Commercialization of New Drug:
the first deal via China Technology Exchange
The first national technology exchange platform - China Technology Exchange (CTEX) was founded in Aug 2009. CTEX serves as an integrated platform for technology-capital docking and technology transfer. It provides a wide range of services including transaction consultancy, technology evaluation, information dissemination and financing. With inputs from patent registration agencies and technology trading organizations, a centralized database of potential projects is being set up to facilitate technology transfer, licensing of technology or other forms of commercialization. Considering the technology specifications and sector’s needs, special trading sessions for pilot project incubation and business matching will be set up accordingly. CTEX aims at facilitating development of technology trading market and expanding contract turnover from RMB130 billion in 2010 to RMB200 billion in 2015.
Trading of Manidipine Hydrochloride Tablets
The Manidipine Hydrochloride tablets, a category 3.1 [1] chemical new drug and the 3rd generation dihydropyridine calcium channel blocker for anti-hypertensive treatment, is currently undergoing clinical trials. It had been successfully transferred from Tianjin Institute of Pharmaceutical Research (TIPR) to Yangtze River Pharmaceutical Group. CTEX was responsible for technical assessment and market research, and formulate the benchmark pricing for technology transfer. After disclosure of project information, many potential companies expressed interests in this project. CTEX then evaluated the financial, industry and marketing capabilities as well as the creditability of those potential transferees. After numerous rounds of negotiation and assessment with four companies, Yangtze Pharmaceutical Group Beijing Petrel Pharmaceutical Co. Ltd. had finally signed the deal at CTEX’s benchmark price.
Trading of Tongluo Phlegm Capsules
Wohua Pharmaceuticals (WP) and Beijing Tiantaiyuan Pharmaceutical Technology Development Co., Ltd. (BJTTY) have recently signed an agreement on trading of production technology and patent of Tongluo Phlegm Capsules (TPC). The transferee WP will own the patent, new drug certificate and drug registration approval document of TPC. Once the supplementary drug approval document and the first batch of large-scale production are ready, the contract will be implemented and valid for 10 years. WP will be the sole manufacturers and distributors of TPC. The transferee will pay the technology transfer fee which includes the new drug certificate, manufacturing approval and patent of TPC, as well as 5% royalty of sales. WP reserves the rights for further collaboration beyond the contract period.
TPC, a category 6.2 [2] new drug approved by State Food and Drug Administration (SFDA) for sales on 4th January 2009, is the joint research output of three government funded projects and now a patented medication for treating ischemic stroke. The project investigator Professor Fan Jiping, Vice President of The China Academy of Traditional Chinese Medicine, has spent 7 years on the scientific research. The formula was originated from the clinical prescription Huatan Tongluo Tang devised by Prof Wang Yongyan, an expert in cerebrovascular disease. It is a preferential prescription for stroke patients according to TCM literature "Chinese internal medicine".
According to the statistics from Southern Institute of Medical Economics, the market for cerebrovascular medicine expanded rapidly by 32% in 2004 and 30.6% in 2005, and reached RMB 8.44 billion in 2006. Traditional Chinese medicine is estimated to account for approximately 30% or 2.5 billion of the total market shares of cerebrovascular medicine.
Remarks:
[1] Category 3.1 chemical new drugs: drugs which have been marketed abroad but not yet in the domestic sale in China; and formulations and their raw materials which have been marketed abroad with/without altered dosage forms excluding those with altered route of administration.
[2] Category 6 chemical new drugs: formulation and preparation of Chinese and natural medicine which have not yet in domestic sale in China.
Sources:
State Intellectual Property Office of PRC www.sipo.gov.cn
China Securities Journal www.cs.com.cn |
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