AstraZeneca has signed a research agreement worth more than US$5 billion with Chinese drugmaker CSPC Pharmaceutical Group, the Anglo-Swedish drugmaker said on Friday.
The deal marks the latest effort by AstraZeneca to revive its business in China, where it has faced several challenges including the arrest of its China president last year and potential fines related to imports.
Under the agreement, the two companies will collaborate to discover and develop pre-clinical candidates for potential treatments targeting chronic diseases, with CSPC conducting AI-driven research in Shijiazhuang City.
Cambridge, U.K.-based AstraZeneca will pay CSPC an upfront fee of $110 million. The Hong Kong-listed firm is also eligible to receive up to $1.62 billion in development milestones and $3.6 billion in sales-related milestones, AstraZeneca said.
In March, AstraZeneca announced plans to invest $2.5 billion in a research and development hub in Beijing, as it works to rebuild trust in its second-largest market.
Reporting by Pushkala Aripaka in Bengaluru; Editing by Tasim Zahid, Reuters
