China-based 3SBio Inc. (HKG: 1530) has announced the termination of a distribution agreement with UK major AstraZeneca (AZ, NASDAQ: AZN), effective from December 31, 2023, concerning AstraZeneca’s Byetta (exenatide). The two companies previously entered into a licensing deal focusing on type 2 diabetes therapies, including Byetta and Bydureon (exenatide microspheres). Bydureon was already discontinued in February 2021. 3SBio noted that the limited financial contribution of Byetta means that the licensing cancellation will not impact the group’s business operations or financial status.
Background on Bydureon and Byetta
Bydureon, a glucagon-like peptide-1 (GLP-1) receptor agonist administered by injection once per week, received market approval in China in 2018 for the treatment of type 2 diabetes. Byetta, typically administered once per day by injection, was co-developed by AstraZeneca and US major Eli Lilly. Both drugs are used to improve blood glucose control in patients with type 2 diabetes. Byetta was first approved in China in 2009.
Licensing Deal and Its Termination
3SBio entered into a licensing deal with AstraZeneca in October 2016, obtaining exclusive commercialization rights to four diabetes drugs in China, including Byetta and Bydureon. With the termination of the agreement for Byetta and the prior discontinuation of Bydureon, the entire licensing deal has now been nullified.
Strategic Implications
The termination of the distribution agreement for Byetta reflects a strategic adjustment in 3SBio’s product portfolio. The company’s focus will likely shift to other areas of its business, leveraging its existing strengths and market opportunities. This move is expected to have minimal impact on 3SBio’s overall operations and financial health, as the contribution of Byetta to the company’s revenues was limited.-Fineline Info & Tech
