BioCentury
ARTICLE | Company News

HEC, TaiGen deal

November 11, 2016 8:58 PM UTC

TaiGen’s TaiGen BioPharmaceuticals Co. subsidiary and HEC’s YiChang HEC ChangJiang Pharmaceutical Co. Ltd. (HKSE:1558, Gongguan, China) will establish an unnamed newco in China to develop and commercialize antiviral agents to treat chronic HCV infection. HEC will invest cash and give the newco Greater China rights to yimitasvir (DAG-181), an NS5A inhibitor. TaiGen will contribute its Greater China rights to furaprevir (TG-2349), an HCV protease inhibitor. HEC said the partners will develop them in combination to produce an oral interferon-free HCV treatment to market in China. The partners said the newco will be capitalized at RMB680 million ($102 million). TaiGen will be responsible for research, clinical development and registration, and YiChang will be responsible for operations, manufacturing and sales and marketing.

At launch, HEC will hold 51% of the newco's equity, and Taigen will hold the balance. Based on results of Phase II testing of the combination, TaiGen said it will receive $20 million from HEC via a share transfer agreement, after which TaiGen will hold a 40% stake in the newco and HEC will own 60%. TaiGen is eligible for an additional $20 million payment if >90% of patients achieve a sustained virologic response (SVR12) 12 weeks after the end of treatment in a Phase II trial. ...