Shanghai Fosun terminating Sellas deal

Shanghai Fosun Pharmaceutical Group Co. Ltd. (Shanghai:600196; HKSE:2196) terminated an October 2013 deal granting Sellas Life Sciences Group (Zurich, Switzerland) worldwide rights excluding China to two preclinical compounds in development for diabetes and lung cancer after Sellas defaulted on payments.

Under the deal, Fosun was eligible for up to EUR 388 million ($529.6 million) in milestones, plus 10% royalties. According to Fosun, Sellas has only paid EUR 1.5 million ($2 million) of the EUR 8 million ($10.9 million) that Fosun was entitled to receive as of June 30. The compounds covered are fotagliptin benzoate, a dipeptidyl peptidase-4 (DPP-4) inhibitor in development for Type II diabetes; and an undisclosed pan-HER kinase inhibitor in development for lung cancer (see BioCentury Extra, Oct. 23, 2013). ...