AstraZeneca Inks Research Pact With China's CSPC Pharmaceuticals Focused On AI-Driven Research, Valued Up To $5.33 Billion
On Friday, AstraZeneca Plc (NASDAQ:AZN) entered a strategic research collaboration with Shijiazhuang City-based CSPC Pharmaceuticals Group Limited.
Per the agreement, AstraZeneca and CSPC agree to discover and develop preclinical candidates for multiple targets with the potential to treat diseases across chronic indications, including a preclinical small molecule oral therapy for immunological diseases.
Financial Considerations
CSPC will receive an upfront payment of $110 million and is also eligible to receive up to $1.62 billion in potential development milestone payments and up to $3.6 billion in sales milestone payments, plus potential single-digit royalties based on annual net sales of the products.
Under the agreement, AstraZeneca will have the right to exercise options for exclusive licenses to develop and commercialize worldwide candidates identified under this agreement.
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CSPC will conduct research in Shijiazhuang City, utilizing its AI-driven, dual-engine efficient drug discovery platform.
This platform uses AI technology to analyze the binding patterns of target proteins with existing compound molecules and conduct targeted optimization to select highly effective small molecules with excellent developability.
The collaboration furthers AstraZeneca’s presence in China following the $2.5 billion investment in Beijing announced earlier this year and strengthens the ongoing collaboration with CSPC.
In March, the European pharma giant said the investment over the next five years is part of a strategic partnership with the Beijing Municipal Government and the Beijing Economic-Technological Development Area Administrative Office, which includes agreements with three biotechs and follows the recent Fibrogen announcement.
AstraZeneca expects its Beijing workforce to grow to 1,700 employees.
In October 2024, AstraZeneca entered into an exclusive license agreement with CSPC Pharmaceutical to advance the development of an early-stage, novel small molecule Lipoprotein (a) (Lp(a)) disruptor for dyslipidemia, a condition characterized by abnormal levels of lipids (fats) in the blood.
It’s a significant risk factor for cardiovascular disease, including heart attack and stroke.
Under the agreement, AstraZeneca received access to CSPC’s preclinical candidate small molecule, YS2302018, as a lipid-lowering therapy with potential in a range of cardiovascular disease indications alone or in combination, including with the oral small molecule PCSK9 inhibitor AZD0780.
CSPC received an upfront payment of $100 million from AstraZeneca and is also eligible to receive up to $1.92 billion for further development and commercialization milestones, plus tiered royalties.
Price Action: At the last check on Friday, AZN stock was down 0.53% to $74.60 during the premarket session.
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