China Grand Pharmaceutical to Acquire 7.6% Stake in Telix

(Bloomberg) -- China Grand Pharmaceutical and Healthcare Holdings Ltd. will spend $25 million for a 7.6% stake in Australian biotech firm Telix Pharmaceuticals Ltd.

The companies entered a licensing and co-development agreement with upfront and milestone payments of as much as $225 million, Hong Kong-based China Grand said in a statement to the city’s stock exchange.

The deal will also include royalty fees for licensed products. China Grand will get exclusive development, manufacturing and commercialization rights in China, Hong Kong, Macau and Taiwan for radionuclide-drug conjugates developed by Melbourne-based Telix.

China Grand also agreed to buy 100% of the equity of Beijing Puer Weiye Biotechnology Co. Ltd., which holds licenses for radioactive pharmaceutical production and trading.

©2020 Bloomberg L.P.