(Yicai) Oct. 9 -- Chinese biopharmaceutical company Bio-Thera Solutions has agreed to license its human monoclonal antibody BAT2206 to Gedeon Richter, one of the biggest drug-making and biotech firms in central and eastern Europe, for distribution in certain countries outside of China for royalties of up to USD110 million.

Bio-Thera is granting Gedeon Richter distribution rights of BAT2206, which is primarily used to treat psoriasis, Crohn’s disease and ulcerative colitis, in the European Union, UK, Switzerland, Australia, and some other European countries, the Guangzhou-based company said.

In return, Gedeon Richter will pay Bio-Thera a one-off downpayment of USD8.5 million and USD101.5 million in milestone payments. Based on the product's sales performance, Gedeon Richter will also give Bio-Thera a double-digit percentage of net sales.

Budapest-based Gedeon Richter achieved gross profit of EUR496 million (USD543.7 million) last year on revenue of EUR2.1 billion (USD2.3 billion).

Bio-Thera, which remains responsible for the research and development as well as production of BAT2206, has applied to China's National Medical Products Administration, the US's Food and Drug Administration, and the EU's European Medicine Agency to take BAT2206 to market, it said.

Many Chinese innovative drugs have entered into overseas commercialization or licensing deals this year.

There were 48 out-licensing agreements of China-developed medicines from Jan. 1 to Sept. 29, according to the People’s Daily. A deal between China’s ImmuneOnco and the US’ Instil Bio could be worth as much as USD2 billion.

Last year the number of out-licensing deals outstripped the number of in-licensing agreements for the first time at 58, US business consultancy firm Frost & Sullivan said in its ‘2024 Blue Book on Chinese Biopharmaceuticals Going Global: Current Status and Trends.’

Editors: Shi Yi, Kim Taylor