(Reuters) - Innovent Biologics Inc said on Friday Paris-based Sanofi (NASDAQ:SNY) SA would invest HK$2.42 billion ($307.88 million) in the biopharmaceutical group to jointly develop two cancer drugs in China.
The all-cash investment by Sanofi unit Sanofi Foreign Participations B.V. will be at a price of HK$42.42 per Innovent share, representing a premium of about 29% to the stock's last close.
Innovent said it had also entered into a licence agreement with Sanofi Foreign Participations for the commercialisation of the two oncology medicines.
The Jiangsu, China-based company said SAR408701, or tusamitamab ravtansine, would be used to treat lung, gastric and other cancers, while SAR444245, or non-alpha IL-2, was under phase-2 studies for skin cancer, head and neck tumours, among others.
Sanofi will receive up to 140 million euros ($143.44 million) in milestone payments and royalties on net sales of the two drugs in China upon new drug application approvals, Innovent said.
($1 = 7.8496 Hong Kong dollars)
($1 = 0.9760 euros)