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    China's CSPC Inks $106M Deal With Allergan Unit

    Signs generic oncology pact with Watson Labs

    05.05.16
    Hong Kong-based CSPC Pharmaceutical Group has inked a deal through which its Shijiazhuang-based subsidiary, CSPC Zhongqi Pharmaceutical Technology, entered an agreement with Watson Laboratories, a subsidiary of Allergan. The deal relates to the product technology licensing and commercialization of a complex generic oncology drug in the global market except China. The product is under development by CSPC Zhongqi utilizing its proprietary technology.

    CSPC Zhongqi is responsible for the pre-clinical development of the product and know-how in relation to its manufacture and ensuring that it is in compliance with the principles and guidelines on good manufacturing practices (GMPs) for medicinal products issued by authorities in the U.S. and EU.

    CSPC Zhongqi agrees to grant an exclusive right to Watson to perform the necessary non-clinical and clinical development and apply for the relevant approvals required for the manufacturing, distribution and sale of the product and to exclusively distribute and sell it. Watson will make milestone payments to CSPC Zhongqi of up to $106 million.

    Upon successful launch of the product CSPC Zhongqi will supply it exclusively to Watson, and in turn Watson will purchase it only from CSPC Zhongqi, which will also be entitled to receive a prescribed percentage of the net profits.
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