China-based Huadong Medicine Co., Ltd (SHE: 000963) has entered into an equity investment and partnership agreement with Chongqing Yuyan Pharmaceutical Co., Ltd. This strategic alliance involves a significant investment and the acquisition of exclusive commercialization rights for Yuyan’s medical aesthetics product in key regions.
Investment and Stake Acquisition
As per the agreement, Huadong will invest RMB 150 million (USD 20.7 million) for a 4.2857% stake in Yuyan. This financial commitment underscores Huadong’s confidence in Yuyan’s potential and the value of their recombinant botulinum toxin type A, YY001.
Commercialization Rights and Milestones
Huadong will obtain exclusive commercialization rights to YY001 in mainland China, Hong Kong, and Macau. The company will pay an upfront fee of RMB 50 million (USD 6.91 million) and is committed to potential regulatory milestone payments of up to RMB 100 million (USD 13.8 million). Yuyan will retain responsibility for clinical development, regulatory filings in China, and global manufacturing supply.
YY001’s Potential and Development
YY001 is an independently developed recombinant type A botulinum toxin protein by Chongqing Yuyan, which possesses the same biological function and pharmacological effects as natural botulinum toxin. This product, recognized as the only recombinant botulinum toxin type A in clinical trials worldwide, has successfully concluded Phase I/II studies in China for improving moderate to severe brow lines, achieving its endpoints.- Flcube.com
