Hua领 Pharma Terminates Commercialization Partnership with Bayer for HuaTangNing, Secures RMB 1.5 Billion in Milestone Payments

Nov 22, 2024 11:07 CST Updated 11:07

Bayer

Pharmaceutical Product R&D Developer

On November 22, Hua Medicine-B (02552) announced that the company had issued a written notice to Bayer HealthCare LLC, expressing its intention to transition the commercialization responsibility of Huatangning, the company’s first-in-class glucokinase activator developed for the treatment of type 2 diabetes, in China from January 1, 2025. To facilitate this transition, the company has the right and plans to terminate the agreement starting from January 1, 2025. From the date of this announcement until the effective termination date, Bayer and the company will continue to fulfill their obligations under the agreement and commit to initiating a friendly, patient-centered transition plan. To support the ongoing commercial sales of Huatangning in China, the company may seek other potential partners for the commercialization of Huatangning in China.

It is reported that Hua Medicine and Bayer signed a strategic cooperation agreement on Huatangning (dorzagliatin tablets) on August 17, 2020.To date, Hua Medicine has received milestone payments from Bayer totaling 1.5 billion yuan.This funding will be used to build a sales team and expand overseas operations, further enhancing Hua Medicine's competitiveness in the global diabetes treatment field. Previously,Hua Medicine and Bayer's cooperation model is a 50-50 split, the funds obtained are sufficient to cover the cost of building its own sales team and bring additional profits to the company.

Hua Medicine's Bayinli (dorzagliatin) has established a strong hospital channel network in China after being included in the National Medical Insurance Drug List.Covering more than 2,000 hospitals,Especially in cities like Beijing, Tianjin, and Shanghai, the coverage of hospitals is the most密集. This extensive market覆盖 not only provides Hua Medicine with a solid market基础, but also lays a good foundation for the upcoming医保放量销售.Sales will further increase the market penetration rate of Hua Medicine's Huatangning after the expansion of medical insurance coverage., bringing good news to more patients with type 2 diabetes.

In addition, the production capacity of Dorzagliatin is rapidly increasing, accelerating its entry into hospitals and pharmacies across China to benefit more patients. With the continuous growth in the number of users, the safety of Hua Tang Ning has been well validated, and its economic and social benefits have significantly improved, boosting confidence in Hua Medicine's future development.

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