AstraZeneca Inks Research Pact With China's CSPC Pharmaceuticals Focused On AI-Driven Research, Valued Up To $5.33 Billion

On Friday, AstraZeneca Plc (NASDAQ:AZN) entered a strategic research collaboration with Shijiazhuang City-based CSPC Pharmaceuticals Group Limited.

Per the agreement, AstraZeneca and CSPC agree to discover and develop preclinical candidates for multiple targets with the potential to treat diseases across chronic indications, including a preclinical small molecule oral therapy for immunological diseases.

Financial Considerations

CSPC will receive an upfront payment of $110 million and is also eligible to receive up to $1.62 billion in potential development milestone payments and up to $3.6 billion in sales milestone payments, plus potential single-digit royalties based on annual net sales of the products.

Under the agreement, AstraZeneca will have the right to exercise options for exclusive licenses to develop and commercialize worldwide candidates identified under this agreement.

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