Kite, Fosun create China-based JV

Kite Pharma Inc. (NASDAQ:KITE) and Shanghai Fosun Pharmaceutical Group Co. Ltd. (Shanghai:600196; HKSE:2196) formed a joint venture to develop Kite's lead chimeric antigen receptor (CAR) T cell immunotherapy candidate, axicabtagene ciloleucel (KTE-C19) in China. The JV may also opt to develop additional Kite candidates.

The two companies will share equal ownership in the Shanghai-based JV, with Fosun receiving 60% of profits and Kite 40%. Kite will receive $40 million up front and is eligible for $35 million in milestones related to axicabtagene ciloleucel, plus royalties. Fosun will also provide $20 million for clinical development and manufacturing...