(Yicai) July 15 -- A subsidiary of Huadong Medicine is paying a maximum of CNY1.3 billion (USD179 million) for the exclusive commercial rights to Auzone Biological Technology’s stroke medicine, that is still under development, on the Chinese mainland and in China's Hong Kong, Macao and Taiwan, and which promises to fill a big gap in the treatment of China’s biggest killer.

Zhongmei Huadong Pharmaceutical will pay Auzone a CNY100 million (USD13.8 million) downpayment for the exclusive China rights to its nervous system disease treatment TTYPO1, Huadong said yesterday. 

The unit will also pay up to CNY400 million in milestone payments during the drug registration process, no more than CNY785 million in phased sales milestone payments, and a net sales commission in the double digits after the medicine goes on sale, said Huadong, which has been buying up the rights to a lot of innovative drugs recently.

TTYP01, which has been independently developed by Suzhou-based Auzone, will be the world's only oral tablet of its kind after it hits the market, Huadong said. It is currently in the final stage of clinical trials for the treatment of acute ischemic stroke, which is when blood supply to the brain is blocked by a blood clot, and it should be ready to file to go to market in the fourth quarter.

Stroke is the main killer of adult Chinese and also the biggest cause of disabilities. Existing therapies, which work well if used properly, can only be applied in emergencies for a short period and this restricts their application, Hangzhou-based Huadong said. Once it goes to market, TTYP01 will have huge growth potential in the treatment of strokes.

The new drug has already secured orphan drug status in the US, or a medicine that needs government assistance in order to be profitable, for the treatment of amyotrophic lateral sclerosis, a nervous system disease that affects the brain and spinal cord, Huadong said.

The firm expects to submit an Abbreviated New Drug Application, which grants US generic drug approval for an existing licensed medication, to the US Food and Drug Administration by the end of this year after finishing bioequivalence research, it added.

Huadong's share price closed down 0.1 percent at CNY27.67 (USD3.81) today.

Editor: Kim Taylor