(Yicai Global) Sept. 19 -- Shanghai Pharmaceuticals Holding, one of China's largest drugmakers, will form a joint venture with Russia's Biocad Biopharmaceutical to produce six cancer and autoimmune disease treatments for the Chinese market.

Shanghai Pharma and Biocad penned a cooperation agreement to establish SPH-Biocad HK with a registered capital of USD400 million, the Shanghai-based firm said in a statement yesterday.

The JV will make and sell three of Biocad's biosimilars used to fight diseases such as cancer, as well as rheumatoid arthritis, which are already sold in Russia. The three others treat autoimmune diseases such as psoriasis and ankylosing spondylitis. One of these started sales in Russia this year and another one is awaiting regulatory approval. The pair aims to develop new cell therapies and vaccines too.

The partnership is an important step for Shanghai Pharma to widen its biomedicine business, and by combining the pair's competitive advantages, the six pioneering products have promising prospects, said Zuo Min, president of the Chinese firm.

A Shanghai Pharma unit will invest USD200.4 million in cash for 50.1 percent of the new firm's equity. For the remainder, Biocad's Hong Kong subsidiary will contribute USD29.94 million in cash and exclusive commercial rights to intellectual property valued at USD199.6 million.

Editor: Emmi Laine