Ten days ago, Fosun Pharmaceutical's official WeChat account already announced this news: the joint venture between Fosun Pharmaceutical and Kite Pharma, Fosun Kite, has been changed to a wholly-owned subsidiary of Fosun Pharmaceutical Group, which means...Gilead Sciences' Cell Therapy SubsidiaryKite Pharma Completely Exits the Chinese Market.
At the beginning of 2017,Fosun and Kite Establish Joint Venture in ChinaFosun Kite，Fosun Pharmaceutical paid Kite a $40 million upfront payment and committed to YescartaYikaida®Payment of a $35 million milestone fee in China, in addition to providing $20 million in initial funding for the new company.Fosun is entitled to 60% of the profits, while Kite receives 40%.The joint venture has the option for other Kite candidate drugs, including TCR therapies KITE-439 and KITE-718, but both projects have currently been discontinued at Kite.
NowFosun Pharmaceutical Plans to Spend 27 Million US Dollars to Acquire 50% of Fosun Kite Biotechnology Co., Ltd.An Additional $10 Million Will Be AddedInvestmentInject into a new wholly-owned subsidiary.This transaction will enable Fosun to fully acquire the China rights to the CD19 CART drug Yescarta.2021YearYescarta Approved in ChinaFor the treatment of relapsed or refractory large B-cell lymphomaB-cell lymphoma,Is the first CAR-T therapy approved in China. Another drug targeting the same point, Tecartus, is currently undergoing bridging studies in China.After the split, Kite will still grant Fosun the rights to Yescarta and Tecartus in China and will provide the viral vectors used for the production of these products.Kite will also receive tiered royalties ranging from 7% to 13% of drug sales.For Fosun Kite's products under research and development, if any product is approved to enter the market, Kite has the right to receive tiered sales royalties ranging from 2% to 4%.According to public information, Fosun Kite achieved revenue of 242 million yuan in 2023. The CD19 CAR-T drug Relma-cel from competitor JW Therapeutics had sales of 174 million yuan last year.Yescarta Yikaida®Priced at 1.2 million yuan in China. According to Fosun Kite, more than 700 patients with large B-cell lymphoma have been treated in China since its approval in June 2021.CAR-T therapy has always faced accessibility challenges due to its high cost and is unlikely to be covered by national health insurance.Fosun Kite has been exploring the coverage of commercial insurance, including the supplementary insurance plan formulated by the Shanghai Municipal Government.Fosun Kite once statedSuch insurance policies can cover up to 42% of drug costs.In January this year, Fosun Kite andChenxi Health, a health management and patient comprehensive service platform under Sinopharm Group, jointly launched the first lymphoma efficacy-based value payment plan in China for Yikai Da®.If complete remission is not achieved within three months, the patient will receive half of their out-of-pocket expenses.Foreign media tend to view this restructuring of Fosun Kite as part of the trend of foreign companies divesting their assets in China. Recent events also include Kyowa Kirin's fermentation business in China being sold to Hong Kong-based WeHealth, and UCB’s divestiture of multiple mature brand rights in China to C-Bridge Capital.Beijing Tiantan Biological Products Acquires CSL's Chinese Subsidiary to Obtain Several Albumin and Human Globulin Products.Welcome to follow and share! All articles in this official account can be freely reproduced as long as the source is acknowledged.
