GSK stock was trading up 0.62% at the time of the announcement.
GSK has struck an exclusive deal with Sino Biopharmaceutical’s subsidiary Chia Tai Tianqing Pharmaceutical (CTTQ) to launch its hepatitis B treatment bepirovirsen in mainland China.
Under the agreement, CTTQ will purchase bepirovirsen from GSK for an initial term of five and a half years. The deal is extendable by mutual agreement between the two parties.
CTTQ will take on importation, distribution and promotional activities in China. GSK keeps marketing authorisation and stays in charge of regulation, quality control and global medical strategy.
Bepirovirsen is described as a potential first-in-class treatment for chronic hepatitis B. It targets the disease in three ways: blocking viral DNA replication, lowering hepatitis B surface antigen levels in the blood, and stimulating the immune system to help achieve longer-term control.
The drug has phase III data behind it and is currently under priority regulatory review in China.
China is a major target for bepirovirsen. Around 75 million people in the country live with chronic hepatitis B, and the disease is treated as a national health priority by Chinese authorities.
CTTQ brings a strong commercial footprint to the partnership. The company has a liver disease portfolio and reach across more than 5,000 medical centres in China, which GSK sees as a key asset for scaling up uptake quickly.
GSK will book sales made to CTTQ directly, keeping revenue recognition on its own books.
The deal also gives GSK an option to look at Sino Biopharmaceutical Group’s early-stage pipeline for potential future collaborations outside of China.
This is not GSK’s first move into China partnerships. The company previously signed a $500 million agreement with Jiangsu Hengrui to develop up to twelve new medicines.
The Sino Biopharmaceutical deal follows a similar model of pairing GSK’s drug development with the distribution strength of a local Chinese pharmaceutical group.
The most recent analyst rating on GSK stock is a Hold, with a price target of £21.00.
GSK’s current market cap stands at approximately £73.57 billion. Average daily trading volume is around 9 million shares.
Technical analysis flags a Buy signal on GSK stock, though the stock remains below key moving averages with a negative MACD reading.
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