Quest PharmaTech inks cancer immunotherapy deal with Hepalink

Canadian firm Quest PharmaTech (TSX-V: QPT) says that its subsidiary, OncoQuest, has signed an agreement with China’s Shenzhen Hepalink Pharmaceutical to fund the research and development of immunotherapies for treatment of cancer in China.

The agreement results in the creation of a new company in China called OncoVent, valued at $9.26 million, to focus on the R&D of cancer immunotherapy products for the Chinese market.  Under the agreement, OncoQuest will license the greater China rights to immunotherapy technologies and provide $1 million for 46% of the shares of OncoVent. Hepalink will contribute $5 million for 54% of the shares of OncoVent.  As part of the accord, OncoQuest will transfer a portion of its shares in OncoVent to Quest such that Quest will own 11% of the shares of OncoVent.

The creation of OncoVent will provide additional resources for product development that OncoQuest can access to accelerate its worldwide product registration strategy. OncoVent will focus on the development, manufacturing and commercialization of cancer immunotherapy products within China with pancreatic cancer as its first target.