Zheng Quan Zhi Xing·2025-08-26 16:35Core Viewpoint - Shanghai Fosun Pharmaceutical (Group) Co., Ltd. has signed a licensing agreement with Sitala Bio Ltd. for the development, production, and commercialization of FXS6837, a small molecule inhibitor for immune modulation diseases, outside of China, including Hong Kong, Macau, and Taiwan [1][3][5]. Group 1: Licensing Agreement Overview - The agreement grants Sitala exclusive rights to develop, produce, and commercialize FXS6837 and related products in a global scope, excluding China [2][3]. - Fosun Pharmaceutical will receive shares valued at $5 million from Sitala at no cost, with an expected ownership stake of no more than 10% on a fully diluted basis [2][3]. - The agreement does not require shareholder approval and is not classified as a related party transaction [3][5]. Group 2: Financial Terms - Sitala will pay up to $190 million in non-refundable upfront and milestone payments, including an upfront payment of $25 million and up to $165 million based on clinical and commercialization progress [5][6]. - Additionally, Sitala will pay up to $480 million in sales milestone payments based on annual net sales of the licensed product [5][6]. - Sitala is also obligated to pay royalties based on the annual net sales of the licensed product at an agreed percentage [6]. Group 3: Product and Market Context - FXS6837 is currently in Phase II clinical trials in China, with a total R&D investment of approximately RMB 120 million (around $17 million) as of July 2025 [3][4]. - The global market for related disease treatments is projected to reach approximately $3.8 billion in sales by 2024 [4]. Group 4: Company Background - Sitala, founded in May 2021 and based in the UK, focuses on developing innovative drugs for inflammatory and autoimmune diseases [5][6].