Arena Pharmaceuticals and Everest Medicines have partnered to develop and commercialise ralinepag and etrasimod in mainland China, Taiwan, Hong Kong, Macau, and South Korea.
“With new regulations in place in China to expedite approvals, a significant opportunity for ralinepag and etrasimod exists in early synchronization of development programs,” said Amit D. Munshi, President and CEO of Arena.
Arena is developing ralinepag, a Phase 3-ready next-generation, oral, selective prostacyclin receptor (IP) agonist for the treatment of pulmonary arterial hypertension (PAH), and etrasimod, a Phase 2 oral, next-generation, S1P receptor modulator, being evaluated for multiple autoimmune diseases, including ulcerative colitis, a form of inflammatory bowel disease.
China is the second largest pharmaceutical market in the world, with healthcare expenditures forecasted to grow rapidly in the coming years.
Evers gains exclusive rights to develop and commercialise ralinepag and etrasimod in the aforementioned territories.
In return, Arena will receive an upfront payment of $12 million, is eligible to receive up to $212 million in development and commercial milestone payments and is entitled to receive up to low double-digit royalties on net annual sales of both ralinepag and etrasimod.