Danish pharmaceutical company ALK-Abelló A/S (ALK) (CPH:ALK-B) said on Wednesday that it has agreed a partnership with Chinese biopharmaceutical company Changchun GeneScience Pharmaceutical (GenSci) to commercialise its house dust mite allergy immunotherapy (AIT) products in Mainland China.

The agreement grants GenSci exclusive rights to ALK's Alutard injectable, skin prick tests, and the ACARIZAX tablet until 2039.

GenSci will assume responsibility for marketing, sales, and most clinical development costs, while ALK will handle production and supply. Alutard sales will transfer immediately, with ACARIZAX to follow pending regulatory approval. The two companies will collaborate to complete ongoing clinical development for approval in adults and children.

The deal includes an upfront payment of approximately DKK245m, regulatory milestone payments of around DKK300m expected between 2028 and 2030, and up to DKK780m in commercial milestones.

While the collaboration is not expected to materially affect 2025 earnings, ALK projects it to be accretive to earnings margin in the medium term, supported by savings on capacity, clinical, and market-building expenses. These savings, combined with income from upfront and milestone payments as well as product supply, will enable ALK to redirect resources to R&D, business development, and global expansion.

GenSci plans to deploy significant sales resources to grow the underpenetrated Chinese AIT market, where fewer than 1 million patients currently receive treatment. Both parties also intend to explore further innovation in allergic diseases, with reciprocal rights of first negotiation for future R&D projects.

(EUR1=DKK7.46)