Chinese pharmaceutical company Simcere Pharmaceutical Group and a privately held, clinical-stage pharmaceutical company Aeromics Inc on Monday jointly reported a collaboration and exclusive license agreement for AER-271 to treat stroke and other indications in Greater China.

The companies added that AER-271 is a first-in-class, proprietary, intravenous (IV) prodrug that delivers AER-270, a potent inhibitor of AQP4 water channels for the treatment cerebral edema (brain swelling) in patients that have suffered ischemic strokes. AER-271 is an investigational drug that has successfully completed a Phase 1 study and is not yet approved by any regulatory agency.

Under the terms of the agreement, Simcere will be responsible for the clinical development and commercialisation of AER-271 in Greater China (mainland China, Hong Kong, Macau and Taiwan).

Pursuant to the partnership, Aeromics will receive an up-front payment and additional payments contingent on certain development, regulatory, and commercial milestones, plus tiered royalties on net sales ranging from high single digit to double digit percentages.

In conjunction with the agreement, Simcere will be responsible for leading development and commercialization of AER-271 in Greater China and will receive a single-digit percentage royalty from the net sales of AER-271 in the rest of the world.

Approximately 2,500,000 strokes are seen in China each year, many of which suffer life-threatening and severely disabling cerebral edema, or brain swelling and may benefit from an anti-edema medication.