(Yicai Global) Jan. 5 -- Jiangsu Hengrui Medicine Co. will sell to a US biotechnology company the exclusive right to clinically develop, register and market an immunotherapy drug for skin diseases, which it developed independently, in the US, the European Union and Japan.

The company aims to accelerate its expansion overseas and let patients worldwide have access to its innovative products, it said. JHM [SHA:600276] signed an agreement with Arcutis Inc. yesterday, under which it will sell the right to carry out its project on JAK1 inhibitor (code 'SHR0302') for the treatment of immune system diseases to the US firm, the drug developer said yesterday.

Under the partnership, JHM will receive up to USD223 million in upfront payment and milestone payments, and can take a cut of annual product sales when the drug hits the market in the US, EU and Japan, the statement said.

SHR0302 is a JAK1 small molecule inhibitor JHM independently develops with intellectual property right, it said. Phase-I clinical trial has been completed among Chinese healthy subjects, while Phase-II is currently underway for the development of SHR0302 oral drug, it added.

Arcutis will get the exclusive right to clinically develop, register and market the drug in the US, EU and Japan and will carry out the relevant experimental work after the agreement is signed, the statement said, adding that the two companies will work together to promote the development and marketing of the drug.

Based in Menlo Park, California, Arcutis is mainly engaged in the research, development and sales of medical skin care products and is backed by Frazier Healthcare Partners, a renowned US venture capital fund, the statement added.