- Allecra is to receive an upfront cash payment and is eligible to receive additional development and commercial milestone payments with an overall deal value of $78 million, in addition to royalties
- Shanghai Haini gains exclusive manufacturing, development, and commercial rights for the license territory
SAINT-LOUIS, WEIL AM RHEIN, SHANGHAI, AND KUALA LUMPUR, 18 DECEMBER 2020 — Allecra Therapeutics (Allecra) announced today that it has signed an exclusive licensing agreement with Shanghai Haini Pharmaceutical Co., Ltd. (Shanghai Haini) under which Shanghai Haini will manufacture, develop, and commercialize cefepime/enmetazobactam within Greater China (including Mainland China, Hong Kong, Macau, and Taiwan). Subject to the satisfaction of terms and conditions as set forth in the aforementioned agreement, Allecra is to receive an upfront cash payment at signing and is eligible to receive further development and sales milestones for cefepime/enmetazobactam with an overall deal value of $78 million, as well as tiered royalties on sales within the licensed territory.
Mr. Iain Buchanan, a board member of Allecra said, “We are very pleased to sign this agreement with Shanghai Haini. They are one of the top pharmaceutical firms in China, and are considered a market leader in the antibiotics space. With their extensive experience and outstanding development and commercialization capabilities, Shanghai Haini is the ideal partner to maximize the opportunity for cefepime/enmetazobactam for this large and important market region.”
Mr. Tan Pengfei, the General Manager of Shanghai Haini, added, “We are pleased to in-license cefepime/enmetazobactam and advance its development in Greater China. There is an urgent need in China, and indeed globally, to bring new antibiotics to the market that can address critical resistance issues. Cefepime/enmetazobactam will be a welcome addition to the tools that doctors have to help their patients, and we look forward to introducing this antibiotic to hospitals and achieving a win-win collaboration.”
Existing investor Xeraya Capital participated in Allecra’s Series C round of €14 million in August 2018, and has been very supportive of the Switzerland-based company’s efforts. Xeraya’s CEO, Mr. Fares Zahir said, “Anti-infectives have been largely neglected over the years, but as antibiotic resistance begins to develop, there is a need for something new. Allecra’s combination anti-infective, which showed great Phase 3 data for complicated urinary tract infections (cUTIs) was indeed timely. Congratulations to the Company and all involved on this significant achievement, and we are looking forward to seeing them build on this further.”
Several parties were instrumental in the completion of this transaction, including a cross-border team of Baker Mackenzie Life Sciences lawyers (led by Julia Braun), who advised Allecra Therapeutics on the legal aspects. Staatz Business Development and Strategy acted as corporate finance and transaction adviser; JunHe LLP provided PRC legal service.
In terms of existing investors, Delos Capital, a global life sciences fund based in Hong Kong, also helped to seal the deal via its representatives on Allecra’s board.
