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Lumosa licensed LT1001 to Jemincare in China

Lumosa and Jemincare Enter into Chinese Licensing Agreement for LT1001, an Extended-Release Analgesic Injection

(December 2nd, 2019, Taipei) Lumosa Therapeutics (“Lumosa”; 6535.TWO) announced today that it has entered into a licensing agreement with Jiangxi Jemincare Group (“Jemincare”) for the exclusive development and commercialization rights for LT1001 (“Product”) in China (including Hong Kong and Macau; “Territory”). According to the agreement, Lumosa may receive up to CNY130 million in upfront and milestone payments with certain percentage royalties from the sales of the Product.
Jemincare has strong sales and marketing team covering various networks in China. In addition to several manufacturing sites and R&D bases in the country, the company also has established regional offices in a number of pharmaceutical-advanced countries such as the US, Israel, Australia. The number of staff totaled more than ten thousand.
Product pipelines include high-priced API, brand-name generics, liposomal drug products. Revenue in 2017 amounted to CNY 23.7 billion with 5-year CAGR of 17%, and three of its products reached CNY 1 billion in sales. Jemincare has experiences in successfully developing and launching of new drugs.
According to the agreement, Jemincare is responsible for the human studies required by the National Medical Products Administration for market approval, as well as the commercialization and marketing of the product after approval. The collaboration between the two companies will accelerate the timeline required for market approval of LT1001 in China, and generate significant sales.
LT1001 has accumulated massive clinical data as the product had been available in major medical centers, hospitals and clinics in Taiwan for more than 2 years. Users’ experience from Taiwan may be utilized to accelerate the timeline required for human study and market approval in China. The sales volume of LT1001 in Taiwan has been increasing steadily; sales volume of 2019 in 2019 Q3 is 66% higher compared to that in 2018.
China is one of the fastest-growing pharmaceutical markets in the world, in which, the anesthetic/analgesic segment has been expanding extensively; when the healthcare services in China become more accessible, the number of surgical cases increases. There were 45 million cases of surgeries in 2015, and in 2017, the total sales volume of anesthetics/analgesic agents in urban Chinese public hospitals was approximately 7.55 billion RMB – more than 30% jump in growth when compared to the sales volume from the previous year.
LT1001 is an extended-release analgesic injection indicated for the relief of moderate to severe post-operative pain for up to 7 days. Compare to morphine, oxycodone and other commonly used analgesic agents for similar indications, LT1001 is much safer and is less likely to cause addictive-issues. Lumosa is expected to significantly expand its revenues through Jamincare’s experienced marketing team.
Lumosa previously signed an out-licensing agreement with Shanghai’s Syntano Technology Venture, a subsidiary of Haike Group. However, in order to shorten the time needed for development and marketing of LT1001 in China, both companies reached a consensus allowing Lumosa to take the lead to search for new partner. Syntano will receive part of the milestone payment from the new license agreement; however, the exact amount is not disclosed.
“Pain management has a huge market,” said Mr. Rong-Jin Lin, CEO of Lumosa Therapeutic, “however, analgesics with unique characteristics is scarce. We are pleased to collaborate with Jemincare in the licensing of our first highly-competitive and specialized drug that can bring benefits to vast number of patients.”
Mr. Lin further indicated that Lumosa will continue its development in pain management through product life cycle management, bringing revenues to Lumosa through expanding indications, increasing production scale to reduce cost, and cooperating with the right partners. “There is an urgent demand for a novel analgesic agent. Lumosa will focus on the licensing efforts in the US, the largest pharmaceutical market in the world,” he added.