Rechon Life Science’s owner Dongbao and Swedish Orphan Biovitrum (STO: SOBI) today announced their intent to form a strategic Commercial Alliance. In such an alliance, Swedish Orphan Biovitrum would be the marketing and sales partner of choice for Dongbao's pipeline of Biopharmaceuticals and other drugs in Europe and Dongbao would be the marketing and sales partner of choice for Swedish Orphan Biovitrum's marketed and pipeline products in China.
The announced Commercial Alliance would be a partnership where both parties will benefit in two ways. First, each party secures a marketing and sales partner for its own products in an important new territory, China in the case of Swedish Orphan Biovitrum and Europe in the case of Dongbao. Second, each party gains access to a new portfolio of exciting products for its home markets.
The parties also announced that they intend to complete the first stage of the Commercial Alliance by completing ongoing negotiations regarding the following products:
Iron Sucrose from Dongbao where Swedish Orphan Biovitrum will be the exclusive marketing and sales partner in
Kineret and the late stage development project Kiobrina from Swedish Orphan Biovitrum where Dongbao will be the exclusive marketing and sales partner in
Swedish Orphan Biovitrum intends to deepen its collaboration with Dongbao, including its affiliate Rechon Life Science Group, as regards manufacturing services.
An alliance will address current pharmaceutical market trends in both China and Europe. The Chinese pharmaceutical market is large and rapidly growing. It is also becoming more and more receptive to high value, innovative products that meet significant unmet medical needs. Thus, Swedish Orphan Biovitrum's products are a good fit with the strong and growing high value, specialty segment of the Chinese market. Similarly, the Biosuperior segment of the European pharmaceutical market is rapidly growing. Again, this makes market entry in Europe for Dongbao's portfolio of Biosuperiors timely and in-line with regional trends.
Martin Nicklasson, CEO of Swedish Orphan Biovitrum stated "We are very pleased to have identified a partner in Dongbao with a successful track record of selling high value biotechnology products in China. Dongbao has a deep understanding of biotechnology products from a manufacturing and clinical development perspective. Moreover, they have an impressive track record of success in regulatory affairs as well as in marketing and sales. Thus, we see Dongbao as the perfect partner to help Swedish Orphan Biovitrum to realize the significant opportunity for our products in the Chinese market.
Additionally, we are excited about gaining access to Dongbao's pipeline of high value Biosuperiors. We look forward to working with these products over the long term to realize the full commercial potential of these products in Europe."
Dr. Zhaoqi Li, Vice President of Dongbao Enterprise Group and the Chairman of the Board of Rechon Life Science Group expressed that "A fast growing Chinese market is now offering great opportunity for innovative and high value pharmaceutical products. We admire Swedish Orphan Biovitrum's remarkable efforts and achievements in the development of specialist pharmaceutical products for rare diseases. We will contribute, with the best of our effort, to the successful introduction of Swedish Orphan Biovitrum's product into the Chinese market as well as into the emerging markets where Dongbao/Rechon already have a strong network established.
It has been a very interesting journey made by Dongbao in the development of high value biotech products. By combining Swedish Orphan Biovitrum's knowledge, experience and market network with Dongbao's interesting range of biotech products we will have a prosperous future in Europe.
Partnership has always been important for Dongbao's business success. The establishment of a strong collaboration with Swedish Orphan Biovitrum will add good value for our future development. We are very excited that such a Commercial Alliance with Swedish Orphan Biovitrum will enable smooth access of our products into the European market and, in the other direction, we are very pleased to offer our support for the successful entry of Swedish Orphan Biovitrum's products into the Chinese market."