(Yicai) May 14 -- Fosun Pharmaceutical plans to invest up to an additional USD240 million to secure the exclusive rights to an innovative early Alzheimer’s drug developed by South Korea’s AriBio in major markets such as the United States and Europe, expanding on what the Chinese drugmaker has already secured in other regions.

Fosun Pharma Industrial, a subsidiary, has signed an exclusive option agreement with AriBio, paying a USD60 million option fee, its Shanghai-based parent company announced late yesterday. It will decide whether to exercise the option within 90 calendar days after receiving full topline data from the drug candidate’s global multicenter Phase III POLARIS-AD clinical trials.

If Fosun Pharma Industrial exercises the option, it will gain the rights to develop, register, manufacture, and commercialize AR1001 (mirodenafil) in the licensed territories covered by the agreement and will be the marketing authorization holder in those markets.

The new agreement builds on the exclusive rights Fosun Pharma last year secured for AR1001 in the Chinese mainland, Hong Kong, Macao, and 10 Southeast Asian countries, underscoring its growing confidence in the drug’s eventual launch and commercial prospects.

AR1001 is a potent and selective phosphodiesterase-5 inhibitor, a small molecule oral drug that is intended to delay the progression of Alzheimer's. Its Phase III human trials have shown that the drug can penetrate the blood-brain barrier, with potential therapeutic effects for patients with mild cognitive impairment to mild dementia caused by early Alzheimer's.

While the latest deal includes major markets such as the US, Japan, most European countries, Canada, and Australia, it excludes 22 countries, including South Korea, Brazil, Argentina, South Africa, and several Middle Eastern and North African markets.

Seongnam-based AriBio will receive an USD80 million upfront payment, along with up to USD100 million in milestone payments tied to AR1001’s regulatory approval and launch progress in the licensed territories, Fosun Pharma said. The Chinese firm will also pay AriBio a low double-digit percentage of annual net sales in each market for 15 years after launch.

Fosun Pharma’s shares [SHA: 600196] closed down 1.9 percent at CNY24.50 (USD3.61) each in Shanghai today, and its Hong Kong-listed stock [HKG: 2196] shed 0.9 percent to HKD18.46 (USD2.36). The benchmark Shanghai Composite Index ended 1.5 percent lower, while the Hang Seng Index closed flat.

Editors. Tang Shihua, Martin Kadiev