(Yicai Global) Oct. 21 -- Chinese drug maker Luoxin Pharmaceutical will pay up to USD22 million to obtain the exclusive rights for developing, producing and commercializing a new drug to treat rhinitis in China.

Luoxin has signed the agreement with Austria’s Marinomed Biotech about the new allergic rhinitis treatment Budeslov, developed by the Vienna Stock Exchange-listed biotech firm, the Shandong province-based drug maker said in a statement yesterday.

Budeslov has successfully completed the third-phase clinical trial which is essential for applying to go on sale in Europe, Luoxin added, noting that in China there is no such kind of treatment for allergic rhinitis on the market.

The partnership will help Luoxin enrich its product pipelines in the field of respiratory disease treatments and promote the international collaboration on the development of new drugs, it said.

Luoxin will pay Marinomed USD2 million up front, followed by USD20 million in installments to be transferred gradually with the progress of the drug development, it added. The pair also agreed that the Chinese firm will pay the Austrian counterpart sales commission for the 10 years following the product’s launch.

Founded in 2001, Luoxin is a healthcare conglomerate engaged in pharmaceutical research and development, manufacture, sale, and healthcare service, according to its website. Respiratory diseases including the allergic rhinitis are one of the firm’s main focuses and it has developed and launched multiple relevant products, it noted in the statement.

Shares of Luoxin [SHE:002793] closed 1 percent up at CNY9.62 (USD1.50) today, giving it a market cap of CNY14.08 billion (USD2.2 billion).

Editor: Futura Costaglione