China’s Huadong Medicine Co., Ltd (SHE: 000963) announced that it has paid a total of EUR 105 million (USD 105 million) to Germany-based Heidelberg Pharma AG (FSE: HPHA) in three installments, as per the agreement signed in February this year.
Stake and Board Representation
As of the deal’s closure, Huadong holds 16,304,560 shares, representing a 35% stake in Heidelberg Pharma, making it the company’s second-largest shareholder. Huadong has also completed the appointment of two supervisors to Heidelberg’s board.
Partnership and License Deal
Under the partnership and license agreement signed in February, Huadong gained exclusive development and commercialization rights to HDP-101 (BCMA-ATAC) and HDP-103 (PSMA-ATAC) for Asia, excluding Japan, India, Pakistan, and Sri Lanka. Heidelberg Pharma’s ATACs (antibody drug conjugates) utilize the compound amanitin as the toxin.
Financial Terms and Regulatory Approvals
Heidelberg Pharma will receive an upfront payment of USD 20 million and milestone payments of up to USD 449 million, plus tiered royalties ranging from single to low double-digit percentages for each candidate. The deal received regulatory approvals in China and Germany in May this year.-Fineline Info & Tech
