(Yicai) Oct. 18 -- Chinese innovative drug developer Chengdu Baiyu Pharmaceutical has awarded the exclusive rights to develop and market its small molecule anti-tumor treatment worldwide to Swedish pharmaceutical giant Novartis.

Baiyu will receive USD70 million in installments, up to USD1.1 billion in milestone payments, and tier loyalties from Novartis for the exclusive development and commercialization rights for BY1298, the Chengdu-based company announced yesterday.

BY1298 is a DNA damage response therapy that detects DNA damage and mediates its repair in different types of DNA lesions, including those caused by chemotherapy and radiation treatments. It has already completed the first phase of clinical trials.

The collaboration with Novartis will help Baiyu make its potential anti-tumor drugs available to global patients, the company noted.

Established in 2005, Baiyu specializes in discovering and developing innovative drugs, including modern botanic and anti-aging drugs.

Authorizing overseas peers to develop and market innovative drugs has become a common practice among Chinese small- and medium-sized pharmaceutical companies. In the first three quarters of the year, more than 80 innovative medicine deals were signed in China, according to statistics from Chinese biotechnology giant WuXi AppTec.

Novartis has been very active in China this year. In January, it acquired SanReno Therapeutics to enhance its kidney disease treatment business and inked two development authorization deals for cardiovascular disease therapies potentially involving USD4.2 billion.

In July, a radiopharmaceutical project in which Novartis invested CNY600 million (USD84.3 million) broke ground at Novatis’ first radioligand therapy production base in China near the Qinshan Nuclear Power Plant. The base is also the company’s second innovative drug-making facility in the country.

Editors: Tang Shihua, Futura Costaglione