Fosun and Expedition make $645m licensing deal for respiratory drug
Fosun Pharma’s subsidiary, Fosun Pharma Industrial, has entered a licence agreement to grant ex-China rights for its experimental respiratory drug, XH-S004, to Expedition Therapeutics. Fosun Pharma will retain the rights to develop, manufacture and commercialise XH-S004 in some specific regions.
This agreement grants US-based Expedition the rights to independently develop, manufacture and commercialise XH-S004, an orally administered dipeptidyl peptidase 1 (DPP-1) inhibitor developed by Fosun Pharma.
The rights are applicable in all regions worldwide, excluding the Chinese mainland, Hong Kong Special Administrative Region (SAR) and Macau SAR.
Fosun Pharma will retain the rights to develop, manufacture and commercialise XH-S004 in these specific regions. Expedition will make substantial financial commitments. It will provide up to $120m, including upfront and milestone payments during development phases.
Should XH-004 achieve certain sales targets within licensed territories, Expedition could pay up to an additional $525m under contract terms.
Fosun Pharma chairman Chen Yuqing stated: “By working together with Expedition, the professional teams and rich industry experience of both parties will provide strong support for the global development and commercialisation of XH-S004, further expanding the accessibility of this product and enabling global patients to benefit from this innovative therapy as soon as possible.”
XH-S004 treats inflammatory respiratory conditions due to its novel mechanism of action as an orally administered DPP-1 inhibitor. Its ability to reduce inflammation and prevent infection cycle progression offers hope for patients suffering from non-cystic fibrosis bronchiectasis and chronic obstructive pulmonary disease (COPD).
Currently undergoing clinical trials in China, XH-S004 is being studied for its efficacy against non-cystic fibrosis bronchiectasis in Phase II trials and COPD in Phase Ib trials.
With no similar small-molecule orally administered inhibitors yet approved worldwide, this drug holds potential as a pioneering treatment option upon successful development and regulatory approval.
