(Yicai) May 17 -- Chinese drugmaker Hengrui Pharmaceuticals granted the exclusive global rights to its glucagon-like peptide-1 diabetes treatment and weight-loss drug portfolio to a newly established company under US private investment firm Bain Capital.

Hercules CM Newco will obtain the development, production, and commercialization rights worldwide, excluding China, for Hengrui's GLP-1 diabetes and weight-loss drug, the Jiangsu province-based company announced yesterday.

In exchange, a USD110 million upfront payment after the related technology knowhow is transferred, and cumulative milestone payments of up to USD200 million based on clinical trial progress and regulatory approvals, the firm noted. 

After the drug is approved for marketing, Hercules will pay Hengrui cumulative sales milestone payments of up to USD5.7 billion based on net sales of the drug within the licensed territories, Hengrui noted.

The authorized GLP-1 product portfolio is an innovative drug self-developed by Hengrui targeting diabetes, obesity, and other metabolic disorders. It combines three products, including small molecule GLP-1 receptor agonists.

The cooperation will help Hengrui expand the overseas market share of its GLP-1 product portfolio, enhance the overall overseas market share of its innovative drugs, and help accelerate the integration of the company's new drug research and development achievements into the global drug innovation network, Hengrui pointed out.

Hercules is a project company formed in Delaware, the US, by Bain Capital and three other investment funds for the deal with Hengrui. After the completion of the transaction, the four investors will collectively hold a 70 percent stake in Hercules, with Bain Capital Life Sciences (BCLS Fund A) being the largest shareholder with a 39.4 percent stake, and the remaining 10 percent stake is reserved for Employmee Stock Ownership Plan.

Hengrui's shares [SHA: 600276] were trading down 0.4 percent at CNY44.50 (USD6.16) as of 2.00 p.m. in Shanghai today, after opening up 1.8 percent.

Editor: Futura Costaglione