China-based Sino Biopharmaceutical Ltd (HKG: 1177) has announced that its subsidiary, Jiangsu Chia Tai Tianqing Pharmaceutical Co., Ltd (CTTQ), has entered into a licensing agreement with France-headquartered Inventiva (NASDAQ: IVA). The deal grants CTTQ development, manufacturing, and commercialization rights to lanifibranor, Inventiva’s drug for the treatment of nonalcoholic steatohepatitis (NASH) and potentially other metabolic disease indications in mainland China, Hong Kong, Macau, and Taiwan.
Financial Terms of the Agreement
Under the terms of the agreement, CTTQ will pay Inventiva an upfront payment of $12 million, with an additional $5 million contingent on the achievement of certain clinical milestones. Inventiva has the potential to receive up to $290 million in clinical, regulatory, and commercial milestone payments. Additionally, subject to regulatory approval, Inventiva will receive tiered royalties ranging from high single-digit to mid-teen double digits of net sales made by Sino Biopharmaceutical in Greater China during the first three years of commercialization, and from low to mid-teen double digits starting from year four.
Drug Overview and Mechanism
Lanifibranor is a PPAR agonist designed to target all three PPAR isoforms in a moderately potent manner, with a well-balanced activation of PPARα and PPARδ, and a partial activation of PPARγ. Unlike other PPAR agonists that target only one or two PPAR isoforms, lanifibranor is the most advanced pan-PPAR agonist in clinical development for the treatment of NASH.
Future Outlook
The licensing agreement between CTTQ and Inventiva marks a significant step in expanding access to innovative treatments for NASH in Greater China. With its balanced activation of PPAR isoforms, lanifibranor has the potential to address significant unmet needs in the treatment of NASH and related metabolic diseases.-Fineline Info & Tech
