China-based Livzon Pharmaceutical Group Inc. (HKG: 1513) has entered into a significant patent and technology transfer agreement with South China Vaccine Corporation Limited (SCVC) for the development of influenza recombinant protein vaccines.
Terms of the Agreement
Under the terms of the agreement, SCVC will grant Livzon Pharma the rights to its trivalent and/or quadrivalent influenza recombinant protein vaccines, developed through the technology being transferred. This move is set to bolster Livzon’s portfolio in the field of influenza vaccination.
Financial Considerations and Milestones
In return for the rights, Livzon Pharma will pay SCVC an upfront fee of RMB 5 million (USD 689,891). Additionally, Livzon Pharma is committed to paying up to RMB 65 million (USD 8.97 million) in development milestone payments and up to RMB 140 million (USD 19.32 million) in marketing milestone payments. The agreement also includes a sales commission structure, capped at RMB 2 billion (USD 275.96 million), further highlighting the potential commercial significance of the technology transfer.
Strategic Implications for Livzon Pharmaceutical
This agreement with SCVC positions Livzon Pharmaceutical Group to expand its presence in the influenza vaccine market, leveraging SCVC’s existing technological advancements. The financial commitments made by Livzon reflect the company’s confidence in the technology and the potential market impact of the recombinant protein vaccines.-Fineline Info & Tech
