(Yicai) July 29 -- Fosun Pharmaceutical Group said the Chinese drugmaker has secured the rights in the Chinese mainland, Hong Kong, and Macao to an innovative treatment being developed for Alzheimer's Disease.

Under the deal signed, Fosun Pharma Industry Development will pay Hong Kong-based biotech firm NeuCo United as much as CNY150 million (USD20.9 million) for the development, registration, production, and commercialization rights to AR1001, its parent company announced yesterday.

The fee includes a CNY40 million (USD5.6 million) upfront payment and milestone payments based on the progress of AR1001's regulatory approval, registration, and market launch. Moreover, the Fosun subsidiary will pay NeuCo a low double-digit percentage of the drug's net annual sales during the 15 years following its release.

AR1001 is a potent and selective phosphodiesterase-5 inhibitor, a small molecule oral drug that is intended to delay the progression of Alzheimer's. It is undergoing a global Phase III trial with patients in the early stages of the disease. So far, the trial has shown that it has potential therapeutic effects for patients with mild cognitive impairment to mild dementia caused by early Alzheimer's.

There is no approved drug on the global market with the same mechanism for the treatment of Alzheimer's as AR1001, according to Shanghai-based Fosun Pharma.

The company’s shares [SHA: 600196] closed 1.2 percent higher at CNY27.23 (USD3.79) each in Shanghai today, after opening up 4.7 percent. Its Hong Kong-listed stock [HKG: 2196] rose 1.5 percent to HKD19.32 (USD2.46).

The collaboration will leverage Fosun Pharma's advantages in new drug clinical trials, development, registration, and localized production while enriching its pipeline of central nervous system drugs, enhancing its market position, strengthening its core competitiveness, and providing more treatment options for Alzheimer's patients.

NeuCo innovates treatments for neurodegenerative diseases, particularly Alzheimer's. It has developed a novel drug platform for Alzheimer's treatment and an artificial intelligence-based drug development platform and has conducted research and development of blood tests for Alzheimer’s.

Editor: Futura Costaglione