On 31 May 2016 4SC AG (4SC, FSE Prime Standard: VSC) reported that it has entered into a licensing and development partnership for the cancer compound 4SC-205 with Guangzhou LingSheng Pharma Tech Co., Ltd (Link Health) (Press release, 4SC, MAY 31, 2016, View Source [SID1234518625]). Link Health will receive the exclusive licensing rights for the development and marketing of 4SC-205 in China, Hong Kong, Taiwan and Macao. In return, Link Health will be responsible for performing and financing the clinical development of 4SC-205.

After successfully completing the clinical studies, Link Health will be responsible for regulatory approval at the CFDA (China Food and Drug Administration) and regional product marketing. The data generated may be used by 4SC to support further development of 4SC-205 in other key markets, such as Europe or the US.

Under the agreement, 4SC will receive upfront and milestone payments totaling up to EUR 76 million from Link Health payable upon achieving specified development, regulatory and commercialization milestones. In addition, 4SC will be eligible to double-digit royalties linked to product sales of 4SC-205 in China.

"We are very pleased to partner with Link Health having in-depth expertise in the clinical development, approval process and marketing of oncology products in this important Asian market," comments Enno Spillner, CEO & CFO of 4SC. "Having shown promising results in the Phase I study in patients with advanced cancer, this partnership is an important step to ensure efficient further development of the cancer drug 4SC-205. On the other hand, in line with its strategic focus, 4SC can use its own financial resources for development of the epigenetic products resminostat and 4SC-202. In parallel, we are looking for further development and licensing opportunities for 4SC-205."

Dr Yan Song, CEO of Link Health, says: "We are proud to be given the opportunity to take over this innovative cancer product for our region and are planning an extensive clinical development program. Thanks to the promising preclinical and clinical data on 4SC-205, we have high hopes for this cancer drug and look forward to a productive and value-adding partnership."

– End of press release –

Further information

About 4SC-205

4SC-205 is a cancer compound that inhibits the so-called "kinesin spindle protein" Eg5, which plays a key role in cell division and therefore the growth of cancer cells. Cell division inhibitors are deployed with great success in oncology, although they have serious side effects. Due to 4SC-205’s special mode of action, the compound does not cause such side effects. To the best of the Company’s knowledge, 4SC-205 is the only Eg5 inhibitor available as a tablet that is currently in clinical development. In a Phase I study, the substance has already shown to be safe and well-tolerated in different dosing schemes. Additionally, initial indications of efficacy were determined.