Astrazeneca Forms a $133 Million Drug Development
AstraZeneca has now established a new drug development joint venture with a state-backed private equity firm in China. The new company, Dizal Pharmaceutical, will be owned equally between AstraZeneca and the Chinese Future Industry Investment Fund (FIIF), which is managed by private equity firm China Sate Development & Investment Corporation (SDIC) Fund Management Company, one of the largest PE funds in China that manages over 60 billion Chinese yuan ($9.1 billion) of capital.
The company has a capital of $132.5 million and is located in the city of Wuxi, where AstraZeneca stations a supply facility, an R&D and production base for innovative small molecules.
Under the deal, AstraZeneca will transfer the R&D capabilities of its Innovation Center China (ICC)—one of AZ’s four R&D sites, responsible for the Asia-Pacific area—to the JV, including exclusive rights to three preclinical drugs in oncology, cardiovascular and metabolic diseases and respiratory. FIIF will provide funding and expertise in establishing strategic partnerships in China.
Dr. Xiaolin Zhang, previously Head of AstraZeneca’s ICC, has been named as Chief Executive Officer of the new company. All staff employed by the ICC have been invited to join the new company.
Pascal Soriot, Chief
Executive Officer of AstraZeneca, said: “AstraZeneca has a long-standing and strong commitment to China, which we are reinforcing today with this ground-breaking joint venture. By joining forces with the FIIF, we aim to accelerate the local discovery and development of innovative, affordable medicines for patients in China and around the world.”Guohua Gao, Chairman of SDIC Fund, said: “FIIF is delighted to be collaborating with AstraZeneca to promote the development of innovative medicines. AstraZeneca’s Innovation Center China has an excellent track record of drug discovery, and the synergy created by combining AstraZeneca’s scientific talent and assets with FIIF’s China expertise and funding will help further promote innovation in medical science.”
The remit of the FIIF in the pharmaceutical industry is to promote the development and manufacturing of innovative medicines in China through strategic partnerships. The joint venture supports AstraZeneca’s commitment to enhancing China’s research and development capabilities through diversified external partnerships that deliver value to patients in China.
