In December 2011, Chi-Med entered into a global licensing, co-development, and commercialisation agreement regarding its highly selective c-Met inhibitor savolitinib with AstraZeneca.
Development costs for savolitinib in China are shared between Chi-Med and AstraZeneca, with Chi-Med continuing to lead the development in China. AstraZeneca leads and pays for the development of savolitinib for the rest of the world.
Chi-Med was entitled to receive an upfront payment as well as further payments contingent on the successful achievement of clinical development and ﬁrst sale milestones.
The agreement also contains possible future commercial sale milestones, a fixed royalty of on all sales in China and double-digit tiered royalties on all sales made outside of China.
In October 2013, Chi-Med entered into a licensing, co-development and commercialisation agreement in China with Lilly for fruquintinib, a selective inhibitor of the vascular endothelial growth factor receptor tyrosine kinase.
Under the terms of the agreement, the costs of future development of fruquintinib in China, to be carried out by Chi-Med, will be shared between Chi-Med and Lilly.
Chi-Med was entitled to receive an upfront payment and development and regulatory approval milestone payments. Should fruquintinib be successfully commercialised in China, Chi-Med would receive tiered royalties starting in the mid-teens percentage of net sales.
Nestlé Health Science
In early 2013, Chi-Med and Nestlé Health Science established our 50/50 joint venture, Nutrition Science Partners ("NSP"), which is researching and developing a pipeline of innovative nutritional and medical products derived from botanical plants.
NSP accesses Chi-Med’s traditional Chinese medicine library of more than 50,000 extracts from over 1,200 different herbal plants and its world-class expertise.
This includes access to a gastrointestinal botanical research and development platform, which includes discovery research, non-clinical and pharmaceutical science functions, and information on botanical guidelines and regulations.
Nutrition Science Partners focuses on gastrointestinal health and may in the future expand into metabolic disease and brain health.