AriBio to sell dementia drug AR1001 in China with partner

South Korea's clinical-stage biotech company AriBio Co. on Wednesday said it signed a memorandum of understanding on strategic cooperation with China's Shanghai Pharmaceuticals to sell AriBio's oral Alzheimer's drug AR1001 on the Chinese market.

Under the MOU, the goals of both companies are technology transfers and exclusive sale of AR1001 in China.

The gist of the deal is cooperating in AR1001's Phase 3 clinical trials in China, commercializing the medicine through the Chinese network of drug import distribution and securing new production facilities compatible with good manufacturing practices.

For the MOU, the two sides early this year signed a confidentiality disclosure agreement and did a comprehensive technical feasibility review. With the conclusion of the MOU, they will begin working-level procedures for full-fledged market entry along with joint clinical development.

With sales last year of about $35 billion (46 trillion won), Shanghai Pharmaceuticals has an extensive distribution network in China of 31 provinces, local government units and autonomous regions and provides services to over 32,000 medical institutions.

AriBio on Thursday said it applied for Phase 3 clinical trials for AR1001 with the Center for Drug Evaluation under the National Pharmaceutical Administration of China. To involve 100-150 Alzheimer's patients in China, the tests are part of AriBio's Polaris-AD's global Phase 3 trials for the drug on 1,250 patients.

"Through this agreement, AriBio has laid the basis for commercialization and guaranteed successful sales of AR1001 in China after conducting Phase 3 clinical trials and receiving approval," AriBio CEO Choung Jai-jun said. "This is the first step toward achieving groundbreaking progress in Alzheimer’s treatment in China.”

Write to In-Hyuk Park at hyuk@hankyung.com