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British pharmaceutical giant AstraZeneca revealed on Friday a significant research partnership with China’s CSPC Pharmaceuticals, potentially valued at up to $5.3 billion.
This collaboration, which leverages artificial intelligence (AI), aims to advance the discovery and development of treatments for chronic diseases affecting billions worldwide.
This new strategic alliance builds upon an existing collaboration between the two drugmakers.
Earlier this year, AstraZeneca had already disclosed plans to invest $2.5 billion in China, signalling its deepening commitment to the region.
Credit: REUTERS/Adam Jourdan
Sharon Barr, Executive Vice President at AstraZeneca, stated, “This strategic research collaboration underscores our commitment to innovation to tackle chronic diseases, which impact over two billion people globally.”
Under the terms of the agreement, CSPC Pharmaceuticals will conduct the research at its facility in Shijiazhuang, utilising its “AI-driven, dual-engine efficient drug discovery platform.” AstraZeneca plans to establish a research and development centre in China, employing up to 1,700 people.
The financial details of the deal include an upfront payment of $110 million to CSPC from AstraZeneca. Additionally, CSPC stands to receive up to $1.62 billion in potential development milestone payments and a further $3.6 billion in sales milestone payments, along with ongoing annual sales-based royalties. The agreement also grants AstraZeneca the option for exclusive worldwide licenses to develop and commercialise promising drug candidates identified through this partnership.
