Chinese pharmaceutical company Gan & Lee Pharmaceuticals (SSE:603087) announced on Thursday that it has entered into an exclusive licensing agreement with JW Pharmaceutical, a pharmaceutical company in South Korea.

Under the agreement, the two companies will collaborate on the clinical development, regulatory filing, and commercialisation in South Korea of Bofanglutide Injection, a bi-weekly (once every two weeks) Glucagon-Like Peptide-1 Receptor Agonist (GLP-1RA) independently discovered and developed by Gan & Lee.

JW Pharmaceutical will gain the exclusive rights to develop and commercialise Bofanglutide Injection in South Korea and Gan & Lee will receive a one-time, non-refundable upfront payment of USD5m. Additionally, Gan & Lee is eligible to receive milestone payments totalling USD76.1m, contingent upon research and development progress, regulatory approvals, and commercialisation achievements. Following the product's commercial launch, Gan & Lee will also receive tiered royalties based on net sales. The total potential transaction value is up to USD81.1m (excluding royalties).

This collaboration marks the third overseas out-licensing deal for Gan & Lee's Bofanglutide Injection, following previous partnerships in Latin America and India.