China's pharmaceutical company Fosun Pharma will join as a strategic shareholder of Alzheimer's disease drug developer Aribio. After signing a global technology licensing deal worth about 7 trillion won in May, the companies are moving ahead with an equity investment, a step that is expected to further strengthen their partnership.
Aribio said on the 3rd that it signed a strategic equity investment agreement with Fosun Pharma totaling $27.5 million (about 42.5 billion won).
Under the agreement, Fosun Pharma will first invest $7.5 million (about 11.5 billion won), and secured an option to make an additional $20 million (about 31 billion won) investment. If the second investment is completed, Fosun Pharma will become Aribio's third-largest shareholder after Solux (to be renamed Aribio Holdings) and Samjin Pharmaceutical.
The investment follows the companies' May agreement for the global exclusive development and commercialization of AR1001, an Alzheimer's disease drug candidate, valued at about 7 trillion won.
At the time, Fosun Pharma secured global rights excluding Korea and China, and the deal was worth up to $5.38 billion (about 7 trillion won), including an upfront payment and milestone payments.
Industry watchers say it is rare for a global drugmaker to decide on a strategic equity investment within a short period after a large technology export deal.
AR1001 is a new drug candidate under development as the world's first oral disease-modifying therapy (DMT) for Alzheimer's disease. Aribio recently completed patient dosing in a global phase 3 trial conducted at more than 230 clinical sites in 13 countries, and is proceeding with subsequent development steps.
With this equity investment, the two companies plan to expand collaboration across the entire lifecycle of AR1001, including development, approval, manufacturing and commercialization, while broadening their cooperation to follow-on drug pipelines, immuno-oncology therapies and vaccine platforms.
An Aribio official said, "This strategic equity investment reflects Fosun Pharma's high evaluation of AR1001's technological capabilities and Aribio's growth potential," and added, "We will successfully drive global commercialization and continue to expand collaboration in innovative drug development."