French firm Inventiva and Chia Tai-Tianqing Pharmaceutical Group Co. (CTTQ), a subsidiary of China-based Sino Biopharm, has entered into a licensing and collaboration agreement to develop and commercialize lanifibranor, if approved, Inventiva’s proprietary compound, for the treatment of non-alcoholic steatohepatitis (NASH) and potentially other metabolic diseases in mainland China, Hong Kong, Macau and Taiwan (Greater China).

In exchange for receiving an exclusive license to develop, import, manufacture, commercialize and market lanifibranor in Greater China, CTTQ will pay Inventiva an upfront payment of $12 million and an additional $5 million if certain clinical milestones are met.

Under the terms of the Agreement, Inventiva has the potential to receive up to $290 million of clinical, regulatory and commercial milestone payments. In addition, subject to regulatory approval, Inventiva will receive tiered royalties from high single-digit to mid-teen double digits of net sales made by Sino Biopharm in Greater China during the first three years of commercialization and from low to mid-teen double digits starting from year four.

Depending on multiple factors, including Chinese regulatory authority feedback, it is anticipated that CTTQ will either join the ongoing NATiV3 Phase III clinical trial of lanifibranor in NASH or run an independent study. CTTQ will bear all costs associated with the trials conducted in Greater China.