- Telix Pharmaceuticals (TLX) has entered a multimillion-dollar strategic partnership with China Grand Pharmaceutical and Healthcare Holdings (CGP)
- The clinical-stage pharmaceutical company will grant CGP exclusive development and commercialisation rights for its Molecularly-Targeted Radiation medical imaging products in the Greater China region
- The partnership is 10 years, following the granting of marketing authorisation for each product
- CGP will also make a strategic investment in Telix which will secure it a 7.62 per cent interest in the company
- TLX shares closed 29 per cent higher at $2.16
Telix Pharmaceuticals (TLX) has entered a multimillion-dollar strategic partnership with China Grand Pharmaceutical and Healthcare Holdings (CGP).
The clinical-stage pharmaceutical company will grant CGP exclusive development and commercialisation rights for its Molecularly-Targeted Radiation (MTR) products.
The products are used in medical imaging of brain, prostate and renal cancer. The partnership will have a 10-year term, following the granting of marketing authorisation for each product.
Telix Pharmaceuticals CEO Dr Chris Behrenbruch said the company believes CGP is the ideal partner for the region.
“Telix’s mission is to be a leading global oncology company and China is an important future market for our products. We believe that CGP possesses the technical experience and execution infrastructure to be an ideal clinical and commercial partner for Telix in China.”
CGP Executive Deputy Officer Frank Zhou said the company believes Telix’s product portfolio will have a significant clinical impact in China.
“China Grand Pharma has a strong commitment to oncology, including radioactive products, in China and around the globe. Grand Pharma sees nuclear medicine as the future and has a strategy to build a suite of the world’s best products to service the Greater China Region, which includes mainland China, Hong Kong SAR, Macau SAR and Taiwan.”
CGP will make an upfront payment of US$25 million (~A$35 million) and later US$225 million(~A$320 million) in regulatory and commercial milestone payments.
Telix will also receive US$65 million (~A$90 million) for clinical development costs of the products and royalties on therapeutic product sales in the territory.
Additionally, CGP will make a US$25M (~A$35 million) investment in Telix in the form of a private placement. Telix will issue 20,947,181 TLX shares at an issue price of A$1.69.
Following the issue of shares, CGP will hold a 7.62 per cent interest in Telix.
TLX shares closed 29 per cent higher at $2.16.