Denmark-based UNION therapeutics A/S and China-based Innovent Biologics (HK) Limited, a subsidiary of Innovent Biologics Inc. (HKEX: 01801) announced on Tuesday that they have signed a strategic collaboration and license agreement for the development and commercialisation of orismilast, a next-generation PDE4 inhibitor with broad anti-inflammatory properties, in China.

According to the terms of the contract, UNION grants Innovent an exclusive license to research, develop and commercialise the product in China, including participating in and hiring Chinese patients for potential future global studies of the product. UNION is to receive an upfront payment of USD20m and is further entitled to receive up to USD247m in milestone payments and tiered royalties on sales of orismilast in China. UNION is to retain global rights for orismilast outside of China.

Dr Yongjun Liu, Innovent president, said, 'We are very pleased to enter a collaboration with UNION. We have been impressed with our partner's capability to advance the global development of orismilast and we are excited to help bring orismilast to patients in China. This collaboration further strengthens our position in autoimmune by adding a mid-stage potential best-in-class therapy into our portfolio. Innovent is proud to be an ideal partner for worldwide biotech and pharmaceutical companies in terms of accelerating the development and commercialisation progress of novel assets to benefit a broader patient population.'