iX Biopharma has entered into an agreement with China Resources Pharmaceutical Commercial Group on Sept 30, for the licensing, supply and distribution of Wafesil in China.
Wafesil is a sublingual sildenafil wafer that treats male erectile dysfunction.
The agreement was signed with the group’s wholly-owned subsidiary, China Resources Pharmaceutical Commercial Group International Trading Co.
The licensing agreement marks the first deal between both companies following the execution of a strategic cooperation framework agreement in April.
Through the framework agreement, iX Biopharma and China Resources Pharmaceutical Commercial Group International Trading Co sought to engage in all-around cooperation that includes the licensing and joint venture activities for iX Biopharma’s pharmaceutical and nutraceutical products in China.
See also: iX Biopharma narrows FY2021 loss on higher sales
The licensing agreement runs for an initial term of 10 years.
Under the terms of the licensing agreement, China Resources Pharmaceutical Commercial Group International Trading Co will be responsible for obtaining the marketing authorisation for Wafesil with the relevant authorities in China.
Upon registration, iX Biopharma, will manufacture and supply Wafesil to China Resources Pharmaceutical Commercial Group International Trading Co at a mutually agreed price. China Resources Pharmaceutical Commercial Group International Trading Co will then market and distribute the product in the country.
Under the agreement, China Resources Pharmaceutical Commercial Group International Trading Co will also have to make certain upfront and licensing fee payments to iX Biopharma before the commercialisation of Wafesil.
As iX Biopharma had previously entered into a licensing, distribution and supply agreement with Yiling Pharmaceutical in April 2020, the company has reached an agreement with the latter to terminate the agreement in light of the “broader partnership” with China Resources Pharmaceutical Commercial Group International Trading Co.
China Resources Pharmaceutical Commercial Group International Trading Co is the primary profit centre of the China Resources Group, which ranked 69th on Fortune Global 500 in 2021.
China Resources Pharmaceutical Commercial Group International Trading Co is also the third largest pharmaceutical distributor in mainland China by revenue. To be sure, the group generated about RMB151 billion ($31.51 billion) in revenue for the FY2020.
“We are honoured to be partnering one of the best and largest pharmaceutical distribution companies in China in our effort to accelerate our penetration into this market. China is one of the world’s fastest growing healthcare markets and second largest healthcare market in the world,” says Eva Tan, chief commercial officer of iX Biopharma.
“The deepening of our relationship with China Resources Pharmaceutical Commercial Group International Trading Co in this manner is a significant step forward for iX Biopharma, and we believe that this will be the first of many more deals to be forged between us,” she adds.
Shares in iX Biopharma closed flat at 23.5 cents on Sept 29.
