Shijiazhuang-based CSPC Pharmaceutical Group signed a potential $106 million deal to outlicense a complex a generic oncology drug to Allergan ($AGN) unit Watson Laboratories of the U.S.
Under the terms, according to a statement to the Hong Kong Stock Exchange, Watson will pay the potential milestones and royalties for the unspecified product under development by the Chinese drugmaker's CSPC Zhongqi unit "utilizing its proprietary technology."
CSPC--one of China's top drug exporters that now includes active pharmaceutical ingredients after the merger of four companies based in Hebei province--said the drug is now in preclinical work and the company is also slated to insure international Good Manufacturing Practice norms.
The drug will be manufactured by CSPC, with Watson gaining rights outside of China as well as holding responsibility for approvals in assigned regions. The company has moved into in-house discovery efforts across oncology, cardio and traditional Chinese medicines.
In April, CSPC's Hebei Yongfeng Yaoye unit was one of three firms hauled up by China FDA for manufacturing lapses, leading to product recalls over suspected faulty origin, labelling, data and quality assessments.
- here's the release