Jones Day advised Shanghai Junshi Biosciences Co., Ltd. Shanghai Junshi Biosciences Co., Ltd. Eli Lilly and Company for the development, manufacturing, and commercialization of two antibodies for the prevention and treatment of the COVID-19 SARS-CoV-2 novel coronavirus.
U.S. pharmaceutical Eli Lilly is partnering with Chinese drugmaker Shanghai Junshi Biosciences to develop new antibody therapies for COVID-19, the disease that has sickened 3.6 million people worldwide.
The companies will collaborate on therapeutic antibody research that could be used to treat and prevent SARS-COV-2, the virus that causes COVID-19, Hong Kong listed Junshi said in a statement. The deal is worth up to $330 million to Junshi.
Lilly will first pay Junshi $10 million, followed by up to $245 million in subsequent installments when specific metrics are achieved, such as obtaining regulatory approval and showing progress in clinical trials. Lilly will also pay more than 10% of net sales to Junshi, according to the agreement.
Lilly also agreed on a potential share placement deal, in which it will buy $75 million of newly issued Junshi shares in Hong Kong. The transaction is pending the signing of a formal agreement.
Under the partnership, Lilly will be granted exclusive rights for clinical development, manufacturing and distribution of new therapies outside the Chinese mainland, Hong Kong, Taiwan and Macau, while Junshi will maintain all rights within the region.
The companies aim to submit an Investigational New Drug application to U.S. regulators and initiate clinical studies in the U.S. in the second quarter of the year, according to Junshi. The company did not provide a timeline for trials in China.
The Jones Day team was led by Thomas Briggs (Picture) and Terry Kwok.
Law Firms: Jones Day;
Clients: Shanghai Junshi Biosciences Co;