BeyondSpring Inks Plinabulin Agreement In Greater China

BeyondSpring Inc BYSI and Jiangsu Hengrui Pharmaceuticals Co Ltd have entered into an exclusive commercialization and co-development agreement for plinabulin in Greater China.
In combination with G-CSF, Plinabulin is currently under FDA Priority Review and the China National Medical Products Administration for the prevention of chemotherapy-induced neutropenia (CIN).
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BeyondSpring's 58%-owned subsidiary, Wanchunbulin, will grant Hengrui exclusive rights to commercialize, co-develop plinabulin in the Greater China markets and retain the manufacturing rights and book all plinabulin revenue in the Territory.
Hengrui will receive a pre-determined percentage of the net sales in each quarter.
Wanchunbulin will receive up to RMB1.3 billion (around $200 million), including an upfront RMB200 million ($30 million).
Wanchunbulin will be responsible for 100% of the clinical and regulatory costs for the first two indications for plinabulin: prevention of CIN and 2nd/3rd line treatment of NSCLC (EGFR wild type).
Hengrui will fund 50% of the clinical development costs for additional indications for plinabulin in the Territory.
Hengrui will make an equity investment at RMB100 million ($15 million) into Wanchunbulin at a pre-money valuation of RMB3.6 billion ($560 million).
Price Action: BYSI shares are up 6.10% at $26.78 during the premarket session on the last check Thursday.