Xbrane signs term-sheet for distribution of Spherotide in China generating approx. SEK 70 M in revenue until market approval and expected sales of SEK 350 M annually for Xbrane and the Chinese partner
Xbrane Biopharma has signed a non-binding term sheet with a leading Chinese pharmaceutical company regarding the distribution of Spherotide in the Chinese market. The commercial terms are negotiated and the intended transaction will give the Chinese company exclusive rights to sell and market Spherotide in China. According to the agreed structure of the intended deal Xbrane will receive a downpayment of SEK 17 million at the signing of the final contract, which is expected in Q1 2017, as well as three equally sized milestone payments totalling approximately SEK 70 million until the product launch scheduled for 2021. The Chinese partner will be responsible for and finance the clinical trials required to obtain market authorization in China.
The Chinese company is one of the largest pharmaceutical companies in the Chinese market with established distribution channels in all regions.
"For us it is important to find the right partners with established distribution channels. During negotiations we have reached common understanding regarding the full sales potential of Spherotide," says Martin Åmark, CEO of Xbrane Biopharma.
Spherotide will, for the Chinese market, be produced in Xbranes production facility in Italy for resale to the Chinese partner at a transfer price. Xbrane estimates that Spherotide can generate annual revenues of approximately SEK 350 million with expected penetration in the Chinese market via Xbrane's partner.
"We have since we intensified our efforts to find partners for different markets seen that Xbrane have a strong negotiating position regarding Spherotide because it is the only generic product for a well-used originator drug. We are currently in negotiations with several parties regarding distribution in other geographies and expect that more deals will be signed over the coming quarters, "said Martin Åmark, CEO of Xbrane Biopharma.
Spherotide is a generic to the drug Decapeptyl® with global sales of approximately SEK 4 billion. It is a depot formulation drug with the active substance triptorelin and is used primarily in the treatment of prostate cancer, endometriosis and uterine fibroids. The drug is based on encapsulation of the active ingredient in biodegradable microspheres that degrade in the body after injection and create a long acting effect. Spherotide is, because of the technological difficulties in the development and production of microsphere-based drugs, the only generic to Decapeptyl®.
Xbrane is a commercial phase Swedish biopharmaceutical company specialized in High Demand Biosimilars and long acting injectables. Xbrane has world leading expertise in developing generics for long acting injectable drugs and proprietary high-yield protein expression technology for the development of biosimilars. Xbranes's headquarter is located in Stockholm and the company's in-house research and development facilities are in Sweden and Italy. Xbrane is listed at Nasdaq First North since February 3rd under the name XBRANE and Avanza Bank AB is Xbranes certified advisor. For more information see www.xbrane.com.
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This information is information that Xbrane Biopharma AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 November 1 2016.