Idorsia Ltd (SIX: IDIA), a Swiss biopharmaceutical company, has entered an agreement with Simcere Pharmaceutical Group Ltd (HKG: 2096) (OTCPK: SMHGF) which will allow the latter company to develop and distribute Idorsia’s daridorexant insomnia medication in the Greater China region.
News of the new partnership was announced on Wednesday, and in accordance with the agreement’s terms, Idorsia will receive a US$30 million payment upfront from Simcere. Idorsia will be entitled to receive an additional US$20 million milestone payment following regulatory approbation from the National Medical Products Association in China.
Greater China (Hong Kong, Macau and Mainland China) is one of the largest pharmaceutical markets on the globe, and Idorsia will also be eligible for low double-digit tiered royalties and additional milestone payments derived from future sales resulting from the agreement.
In adherence with the agreement, Simcere will be responsible for funding and orchestrating a local development program with Chinese patients using Idorsia’s daridorexant. The addition of the drug to Simcere’s lineup will expand its array of central nervous system (CNS) products in China.
Simcere’s use of Sanbexin for the treatment of acute ischemic stroke is another example of a CNS drug formulated by the company.
“This licensing agreement represents an important and exciting step in pursuing Simcere’s mission of providing today’s patients with medicines of the future. There are over 200 million people in China who suffer from chronic insomnia that may benefit from daridorexant,” said Jinsheng Ren, CEO of Simcere.
“Daridorexant is on track to becoming a global success, helping the millions of sufferers of insomnia around the world. Marketed as QUVIVIQ, we expect daridorexant will soon be the leading branded insomnia medication in the United States in terms of new prescriptions,” added Jean-Paul Clozel, CEO of Idorsia.
Clozel also added that Idorsia had been convinced of Simcere’s shared enthusiasm for the insomnia drug and that he was confident they were the right partner choice for bringing this medication to suffering patients around the world following daridorexant’s development and commercialization in China.
Idorsia stock dropped by 1.95 per cent today to CHF$0.20 on the Swiss Exchange.