October 22, 2015, Shandong Luoxin Pharmaceutical Croup Stock Co., Ltd (¡°Luoxin¡±) entered into an agreement with CJ HealthCare Corporation (¡°CJ HealthCare¡±). The agreement grants Luoxin an exclusive right to develop, manufacture and commercialize its asset CJ-12420 for the treatment of Gastrointestinal acid-related disease in the territory of mainland China.
Mr.Baoqi Liu, Chairman of the Board of Luoxin and Mr.Seok-Hee, Kang, CJ HealthCare's President and Chief Executive Officer signed on and took a group photo
Under the Agreement, Luoxin will be responsible for development, manufacture and commercial activities in the Territory and associated expenses. Terms of the Agreement include up-front payment, and subsequent clinical, regulatory, and performance-based milestone payments. Luoxin will also pay CJ HealthCare double-digit percentage royalties on net sales of CJ-12420 in the Territory. Luoxin and CJ HealthCare have agreed on the initial development plan that will be executed by Luoxin. It is anticipated that the clinical trial application will be submitted in the first half of 2016.
"We are pleased to partner with CJ HealthCare to develop and commercialize CJ-12420 in China," said Baoqi Liu, Chairman of the Board of Luoxin. "CJ-12420 is an excellent fit with Luoxin's commercial capabilities and portfolio, and we believe that we can move CJ-12420 development rapidly as a new treatment option to address the unmet needs of Chinese patients with Gastrointestinal acid-related diseases. Rely on the comprehensive capability of the Luoxin including development, manufacture and commercialization, we expect to bring to more innovative and clinical differentiated medicine to Chinese patients.¡±
"This transaction helps us further our goal of maximizing the value of CJ-12420 by selectively licensing rights to the product outside of Korea," said Seok-Hee, Kang, CJ HealthCare's President and Chief Executive Officer. "Luoxin is a leading pharmaceutical company in China with an impressive track record of achieving development, registration and effectively commercializing pharmaceutical products, especially for the acid inhibition treatment market in China, will achieve a great success in the China market."
CJ-12420 is a potassium-competitive acid blocker (P-CAB) in Phase 3 development for the treatment of reflux esophagitis and other acid-related GI diseases. CJ-12420 competitively inhibits the binding of potassium ions to H+,K+-ATPase in the final step of gastric acid secretion in gastric parietal cells, which has the potential to provide a strong and sustained acid secretion inhibitory effect.
Pursuant to the statistics from IMS, in mainland China, the CAGR (Compound Annual Growth Rate) of Gastrointestinal anti-acids market is about 25% in 2010-2014, and the annual sales revenue reached 2.6 billion US dollars in 2014.
Luoxin and CJ Healthcare£¬Signing Ceremony for CJ-12420
Luoxin is a well-established domestic pharmaceutical company in China, which has the full chain capability of R&D, manufacture, supply, and commercialization. In 2014, sales revenue reached 1B USD. In 2014, Luoxin Shanghai R&D center was set up, with the commitment to enrich current pipelines (generics) with innovative medicines, through in-licensing and strategic partnerships. With the comprehensive capabilities in China market, Luoxin is committed and dedicated to provide good medicines to Chinese patients. For further information, please visit us at www.luoxinbio.com .
About CJ HealthCare
CJ HealthCare Corp. is a wholly owned subsidiary of CJ CheilJedang Corp., which is the backbone of Korea's giant CJ Group. Since its establishment in 1984, CJ HealthCare has taken firm leadership in the local pharmaceutical market thanks to its product lineup of prescription drugs such as gastrointestinal, anticancer, circulatory system, diabetes, and kidney disease treatments and over-the-counter (OTC) drugs. CJ HealthCare continues its commitment to R&D and innovation for the healthier future of human beings. CJ HealthCare looks set to secure the product pipelines of new drugs and biologics based on its invaluable human resources with globally competitive R&D competencies by 2020 and globalize its arena through tapping into overseas markets more proactively. CJ HealthCare discovers, develops, manufactures and markets mainly prescription drugs and achieved 435 Million USD with 1,156 employees in 2014. For further information, please visit us at www.cjp.co.kr .
Shandong Luoxin Pharmaceutical Group Stock Co., Ltd.
Business Development Director
86(21)50860180 - 8865
CJ HealthCare Corporation
Strategy Support Specialist