SciClone gains China rights to Zensun's Neucardin

USA-based SciClone Pharmaceuticals (Nasdaq: SCLN) today announced that the Company has entered into an agreement with Zensun (Shanghai) Science & Technology granting SciClone a license and the exclusive rights in China, Hong Kong and Macau to promote, market, distribute and sell Neucardin, a genetically engineered recombinant peptide fragment of neuregulin-1 and a novel, first-in-class therapeutic drug for the treatment of patients with intermediate to advanced chronic heart failure (CHF).

Financial terms of the deal include aggregate potential milestone payments of up to $18.5 million. SciClone has agreed to make additional payments of $10 million should Zensun receive approval of Neucardin by subcutaneous infusion. Further indications and improved product forms of Neucardin could result in additional payments. Also included in the accord is a $12 million collateralized loan facility by which SciClone would provide a secured loan to Zensun which it may use in future. The agreement provides for the principal terms of the arrangement between SciClone and Zensun, and the companies have agreed to negotiate a supplemental license and supply agreement.

A couple of years ago, China-focused SciClone acquired NovaMed Pharmaceuticals, a Chinese specialty pharmaceutical company, in a deal worth up to $105 million (The Pharma Letter April 21, 2011). The acquisition provides SciClone with additional broad sales and marketing, as well as regulatory and extensive business capabilities and pharmaceutical assets in the regulatory approval stage to its growing and profitable China-focused specialty pharmaceutical business, the US drugmaker said at the time.