(Yicai) Aug. 15 -- Jiangsu Hengrui Pharmaceutical is granting US drugmaker One Bio the exclusive rights to develop and commercialize its new asthma treatment in all markets worldwide with the exception of China, in a deal that is expected to earn the Chinese pharmaceutical firm as much as USD1 billion.

One Bio will have the sole right to produce, sell and distribute SHR-1905, which is a monoclonal antibody injection used in the treatment of severe asthma, everywhere in the world except China, the Lianyungang, eastern Jiangsu province-based company said yesterday.

In return, Florida-based One Bio must make an upfront payment of USD21.5 million and a first milestone payment of USD3.5 million, it added. Total development and sales milestone payments will not exceed USD1 billion, subject to the new drug’s approval in the US, Japan and certain European countries.

One Bio will also pay Hengrui Pharma a double-digit sales commission after the medicine is launched.

SHR-1905’s unique mechanism of action may make it a best-in-class drug in its category, Hengrui Pharma said. The drug is currently in phase II clinical trials for asthma and chronic sinusitis, both of which started in May 2021. The company has invested CNY57 million (USD7.8 million) in developing the medicine so far.

More tie-ups with leading international players will speed up the introduction of Hengrui Pharma’s products into overseas markets and help it to become part of the global R&D network of drug innovation, it said.

SHR-1905’s main competitor is Tezspire which was approved to go to market in the US in 2021 and in Japan and the EU in 2022. Tezspire, developed by the UK’s AstraZeneca and the US’ Amgen, generated around USD107 million in global sales in the first quarter and around USD174 million last year, according to the Evaluate Pharma database.

Other similar drugs are still at the clinical trial stage, Hengrui Pharma said.

Unaffected by the news, Hengrui Pharma's share price [SHA:600276] closed down 0.4 percent at CNY40.45 (USD5.50) today.

Editor: Kim Taylor