Chinese biotech firm Genscript’s shares jump by a third on US$350m Johnson & Johnson unit tie-up
The deal with a biotech subsidiary of the American health care giant is a major shot in the arm for the Chinese drug developer and appears to recognise its potential as one of the world’s largest providers of gene synthesis services.
It comes 11 days after Genscript said the Chinese government had accepted its application to run clinical trials for its treatment for multiple myeloma. It is an incurable form of cancer that causes the build-up of abnormal plasma cells in the bone marrow.
“The group’s collaboration with Janssen will enhance its experience and infrastructure in connection with its clinical trial development and commercialisation of its products,” Genscript said in a filing to Hong Kong’s bourse on Friday.
Under a “collaboration and licence agreement” with Janssen Biotech, the latter will pay a Genscript subsidiary US$350 million within 10 days.
There are significant research and development costs related to clinical trials … the sharing of costs with Janssen would alleviate the burden of Genscript
More “milestone payments” will be made to cover factors including manufacturing costs, commercialisation approval and sales of the proven treatment.