On 26 February 2016 (London time), CMS entered into an exclusive licensing agreement with AstraZeneca AB (“AZ” for short), for the commercialization rights of AZ’s Plendil in China. Meanwhile, CMS acquired the commercialization rights of AZ’s another product, Imdur . As a bonding and holding company of Tibet Rhodiola Pharmaceutical Holding Co.,, CMS agrees to guarantee the obligations of Everest Future, a wholly-owned subsidiary of Tibet Rhodiola Pharmaceutical Holding Co.,, on purchasing the Imdur assets.
CMS has agreed to pay AZ a total license fee of USD 310 million to acquire 20-year exclusive marketing rights of Plendil in China. Upon expiration of the initial period and subject to the terms of the exclusive licensing agreement, the agreement shall be automatically extended for another five years. Plendil (Felodipine Sustained Release Tablet) is an original patented calcium channel blocker product from AstraZeneca, it’s a commonly used drug for hypertension and stable angina pectoris. It is also a guideline recommended drug for the prevention and treatment of hypertension in China . Plendil has been marketed in China for several years and is a NRDL-B (National Reimbursement Drug List-B class) product. According to the data of AstraZeneca, sales of Plendil in Chinese market were around 1.2 billion RMB in 2015.
Tibet Rhodiola Pharmaceutical Holding Co., spent USD$190 million for the global rights of Imdur outside the US market. Tibet Rhodiola Pharmaceutical Holding Co., intends to raise the investment funds through private placement. Upon completion of the transaction, AZ will thoroughly stripped off Imdur and Tibet Rhodiola will own all the product registration certificates, trademarks, know-how, global relevant documents and records of Imdur. Tibet Rhodiola will also be responsible for Imdur’s -manufacture and global sales. This is a significant transaction that supports the internationalization strategy of Tibet Rhodiola. Imdur (Isosorbide Mononitrate Sustained Release Tablets) was used for long-term treatment of coronary artery disease and prophylactic angina pectoris. Imdur was developed by AstraZeneca and first launched in Europe in 1985. Since its first launch, Imdur has been marketed in over 40 countries around the world. Sales of Imdur in all markets outside the US were around 57 million USD in 2015.