Chinese Drugmaker Aosaikang to Bring in Oral Iron Supplement From UK’s Shield Therapeutics

中国奥赛康引进英国Shield Therapeutics产品
Published on: January 8, 2020
Author: Amy Liu

Chinese medicine manufacturer Beijing Aosaikang Pharmaceutical inked a licensing agreement today with UK-based specialty pharma firm Shield Therapeutics to obtain the exclusive right to develop, produce and market in China a new-style oral iron supplement which the British drugmaker developed, Aosaikang said in a statement.

Aosaikang’s unit in eastern Jiangsu province will pay the first installment of USD11.4 million to Shield as well as an applicable development milestone payment of USD11.4 million and a further sales-related up to USD40 million royalty after approval to introduce the product into the domestic market is forthcoming from Chinese regulators and a specific sales target is hit. The London-based company will also get 10 or 15 percent of sales, under the contract.

Iron deficiency is the world’s most common type of malnutrition, Aosaikang said, adding the incidence rate of diseases stemming from lack of iron, including anemia reaches over one-fifth in China, while the volume of the country’s iron supplement market has topped CNY3 billion (USD433 million), and the number of potential users of anti-anemia medicines is at least 200 million with a corresponding potential market volume of CNY20 billion.

Shield’s shares [LON:STX] fell 2.54 percent to GBP173 (USD228) yesterday, while Aosaikang stock [SHE:002755] rose 2.63 percent to CNY15.90 (USD2.29).

The product is in the form of a capsule branded as Feraccru in the EU and Accrufer in the US. Its main ingredient is ferric maltol. It has a unique absorption mechanism and works as an ideal alternative therapy for patients who suffer from a deficiency of the vital element but who intoleraNT to iron compounds. This medication holds forth the hope of enhancing patients’ treatment experience and thereby precluding the need for intravenous injections, the statement also noted.

Formed in 2003, Aosaikang mainly focuses on drug research and development in the areas of gastrointestinal disorders, tumors, diabetes and severe infections. The firm’s operating revenue was CNY3.9 billion in 2018 in an annual rise of 15.5 percent, with net profit which grew by 10.3 percent annually to CNY670 million (USD96.3 million).

Source: yicaiglobal.com

Life Science Pharmaceutical