HONG KONG, Oct. 24, 2013 /PRNewswire/ -- Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma" or the "Company"; stock code: 600196-SH, 02196-HK; and, together with its subsidiaries, the "Group"), a leading healthcare company in the PRC, announced that Chongqing Fochon Pharmaceutical Co., Ltd. ("Chongqing Fochon"), a subsidiary of Fosun Pharma, has entered into a cooperation agreement with SELLAS Clinicals Holding AG ("SELLAS") in Greece.
Based on this agreement, Chongqing Fochon will transfer its global rights, except the People's Republic of China, in development, sales and distribution in two innovative therapies for Type II Diabetes and Cancer, Fotagliptin benzoate and Pan-HER Inhibitors, respectively. The estimated total consideration of approximately EUR388 million (approximately RMB3.248 billion) will be settled by installment.
Upon obtaining the approvals of these two therapies in the United States and/or Europe, Chongqing Fochon will hold a 10% royalty in these regions on net revenue sales for eight years. Meanwhile, Chongqing Fochon will hold the rights to be entitled to a 3% equity interest in the subsidiary of SELLAS which owns these two therapies.
The Chinese Ambassador to Greece, Mr. Du Qiwen said, "The Chinese government is very supportive of this technological innovation. With the mutual efforts of both sides, the government hopes to launch new drugs as quickly as possible. At the same time, it will certainly strengthen the bilateral relationship between China and Greece."
Commenting on the cooperation, Mr. Chen Qiyu, Chairman of Fosun Pharma, said, "The out-licensing transaction shows that Fosun Pharma's R&D capability is well recognized by overseas pharmaceutical companies. It's a milestone of our globalization. International expansion constitutes a major part of the group's globalization strategy. This has further enhanced Fosun Pharma's influence worldwide. We look forward to the cooperation and hope we can work together to speed up the development process and launch the products as early as possible, so as to benefit more patients."
Dr. Angelos Stergiou, the Chief Executive Officer and Chairman of Sellas Life Sciences Group said, "For our company, the cooperation with Chongqing Fochon and its parent company Fosun Pharma not only provides great help for developing the innovative therapies for Type II Diabetes and Cancer, but is a milestone for our development. The cooperation with Chongqing Fochon will motivate the communication between China and Greece in technological knowledge and innovative R&D activities. Our experienced management team will devote to promote the market position of these molecule projects due to its huge market that exceeds EUR45 billion."
Mr. Jian Ding, Academician, Director of Shanghai Institute of Materia and Medica, CAS said, "China's biomedical industry has entered into a vital strategic transformation phase, including to rely on technological innovation and to change growth mode. We're delighted to witness the achievements of Fosun Pharma regarding its innovation investment and perseverance.
"It proves, again, that Fosun Pharma's R&D capabilities and resources in the pharmaceutical industry. We believe our advantages and powerful alliance can quickly come to fruition. Through our mutual efforts, we will develop medicine that Chinese people can afford, so that Chinese innovative medicines can tap international market and better benefit the people. It will be certainly attributable to the realization of the three-step biomedical development plan in China."
Mr. Chen Qiyu, Chairman of Fosun Pharma, said, "Our Company has been actively exploring new business opportunities for the long run. As far as I know, our cooperation with SELLAS is the first pharmaceutical project between China and Greece. Fosun Pharma cooperates with Greek pharmaceutical R&D Company and promotes the innovative products to mainstream European and American innovative drug company. This means that the R&D investment of Fosun Pharma is entering into the harvest stage gradually. We firmly believe that our commitment to innovation investment will continuously improve the company's innovation ability and bring in new products to markets. Also, we have the strength and confidence to lead China's own R&D new drugs worldwide, especially to mainstream markets in Europe and America."
Mr. Du Qiwen, the Chinese Ambassador to Greece, Mr. Notis Mitarakis, the vice officer of Development Department of the Greek Government, Mr. Chen Qiyu, Chairman of Fosun Pharma, Mr. Wang Weibo, the CEO of Chongqing Fochon and Dr. Angelos Stergiou, the Chief Executive Officer and Chairman of Sellas Life Sciences Group etc. participated the signing ceremony in Greece.
