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LONDON/SHIJIAZHUANG - AstraZeneca PLC (LSE:LON:AZN) has entered into a strategic research collaboration with China-based CSPC Pharmaceuticals Group Limited to develop novel oral drug candidates using artificial intelligence technology, according to a press release statement issued Friday.
Under the agreement, AstraZeneca (NASDAQ:AZN) will pay CSPC an upfront payment of $110 million, with potential additional payments of up to $1.62 billion in development milestones and $3.6 billion in sales milestones, plus single-digit royalties on annual net sales.
The collaboration will focus on discovering and developing pre-clinical candidates for multiple targets across chronic indications, including a pre-clinical small molecule oral therapy for immunological diseases. CSPC will conduct the research at its facilities in Shijiazhuang City using its AI-driven drug discovery platform.
"This strategic research collaboration underscores our commitment to innovation to tackle chronic diseases which impact over two billion people globally," said Sharon Barr, Executive Vice President and Head of BioPharmaceuticals R&D at AstraZeneca, in the release.
AstraZeneca will retain rights to exercise options for exclusive licenses to develop and commercialize candidates identified through this collaboration worldwide.
The partnership follows AstraZeneca’s $2.5 billion investment in Beijing announced earlier this year and strengthens the company’s existing relationship with CSPC.
AstraZeneca, headquartered in Cambridge, UK, focuses on developing prescription medicines in oncology, rare diseases, and biopharmaceuticals. The company’s products are sold in more than 125 countries.
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