Innovent Biologics Inc said Friday that Paris-based Sanofi SA would invest HK$2.42 billion ($307.88 million) in the biopharmaceutical group to co-develop two cancer drugs in China.
The cash investment by Sanofi unit Sanofi Foreign Participations BV will be at a price of HK$42.42 per Innovent share, representing a premium of approximately 29 percent over the last close of the share.
Innovent said it had also entered into a licensing agreement with Sanofi Foreign Participations for the commercialization of the two oncology drugs.
The Jiangsu, China-based company said SAR408701, or tusamitamab ravtansine, would be used to treat lung, stomach and other cancers, while SAR444245, or non-alpha IL-2, was in Phase 2 trials for skin cancer, head and neck tumors among other things.
Sanofi will receive up to 140 million euros ($143.44 million) in milestone payments and royalties on the net sales of the two drugs in China upon approval of new drug applications, Innovent said.
($1 = 7,8496 Hong Kong dollars)
($1 = 0.9760 euros)