Fosun Pharma announced that its subsidiary Fosun Pharma Industrial has signed a License Agreement with Expedition Therapeutics Inc.(Expedition) to grant Expedition the rights to develop, manufacture, and commercialize XH-S004, an orally administered dipeptidyl peptidase 1 (DPP-1) inhibitor independently developed by Fosun Pharma, in all regions globally except Chinese Mainland, Hong Kong SAR and Macau SAR. Fosun Pharma will retain the rights to develop, manufacture, and commercialize XH-S004 in Chinese Mainland, Hong Kong SAR and Macau SAR.

Under the agreement, Expedition will pay Fosun Pharma up to US$120 million including upfront payment and development milestone payments. In addition, based on the annual net sales of XH-004 in the licensed territories, Expedition will pay up to US$525 million in sales milestone payments as stipulated in the contract.

XH-S004 is a small molecule orally administered DPP-1 inhibitor independently developed by Fosun Pharma. It reduces inflammatory responses and blocks the infection cycle and airway structural damage by inhibiting DPP-1 and the neutrophil serine proteases activated by it. As of now, XH-S004 is in Phase II clinical trials in China for the treatment of non-cystic fibrosis bronchiectasis and in Phase 1b clinical trials for the treatment of chronic obstructive pulmonary disease(COPD). Currently, no small molecule orally administered inhibitors with the same mechanism of action have been approved for marketing worldwide.

"We are very pleased to have reached this collaboration with Expedition. XH-S004 is an innovative drug independently developed by Fosun Pharma for the treatment of respiratory system diseases, and its unique mechanism and clinical value have been highly recognized by our partners." Chen Yuqing, Chairman of Fosun Pharma said, "By working together with Expedition, the professional teams and rich industry experience of both parties will provide strong support for the global development and commercialization of XH-S004, further expanding the accessibility of this product and enabling global patients to benefit from this innovative therapy as soon as possible."

"We are pleased to be working with Fosun Pharma, one of the leading pharmaceutical companies in China. XH-S004 is an exciting compound that targets neutrophilic inflammation, an important underlying driver of a number of chronic respiratory diseases." Yi Larson, Chairman and CEO of Expedition said, "We look forward to partnering with Fosun Pharma in the development of XH-S004 for COPD and other neutrophilic inflammatory diseases to address the significant unmet medical need."