Newcastle pharma firm expands global reach with $11.4m China deal

Newcastle based Shield Therapeutics has secured a licence agreement in China for its lead product Feraccru and will receive an upfront payment of $11.4m.

Alongside the financial terms of the licence, the agreement sees ASK Pharm undertaking and paying for all activities to achieve marketing authorisation and then commercialising the drug used to treat iron deficiency in the territory.

Pharmaceutical company Shield Therapeutics will receive an upfront payment of $11.4m and is eligible to receive a further $11.4m upon regulatory approval of Feraccru in China.

Shield will also receive up to $40m in milestone payments upon the achievement of specified cumulative sales targets.

ASK Pharm will be responsible for all clinical and regulatory costs and activities as well as all manufacturing and distribution costs of goods sold in the territory.

CEO of Shield Therapeutics Carl Sterritt said: “I am delighted to announce this agreement with ASK Pharm, who have been determined to succeed throughout a competitive licensing process for Feraccru in China.

“They are an ambitious and successful pharmaceutical company with an excellent track record of product development and commercial success.

“We very much look forward to working with ASK Pharm and supporting them as they advance the Feraccru franchise in China. We look forward to updating the market on progress with ongoing discussions relating to the commercialisation of the drug in the US.”

Based in Nanjing, ASK Pharm was founded in 2003 and is an integrated pharmaceutical enterprise that focuses on the gastrointestinal and oncology therapeutic areas, being one of China’s leading manufacturers of proton pump inhibitors and oncology medications.

Qingcai Chen, Chairman of Beijing Aosaikang Pharmaceutical Co. Ltd. said: “ASK Pharm will now work closely with Shield to rapidly complete any required clinical development in China and bring this revolutionary product to patients with iron deficiency as early as possible.

“This co-operation will expand our company’s therapeutic area experience and improve our competitiveness, whilst also creating a new development and commercialisation opportunity for ASK Pharm.”