Benzinga | Jan 6, 2021 05:26AM EST

Genetron Health Announced Exclusive Strategic Partnership with Sino Biopharm Subsidiary for HCCscreen Test for Hepatocellular Carcinoma in China

Genetron Holdings Limited ("Genetron Health" or the "Company") (NASDAQ:GTH) and Chia Tai Tianqing Pharmaceutical Group Co., Ltd. ("CTTQ"), a subsidiary of Sino Biopharmaceutical Limited ("Sino Biopharm") (HKEX: 1177), today announced an exclusive strategic partnership agreement for HCCscreen™, Genetron Health's blood-based early screening test for hepatocellular carcinoma ("HCC") in China. This partnership targets the hospital market in China, with a focus on combatting liver disease, and marks Genetron Health's third key commercialization initiative of HCCscreen™ in the country, complementing its existing sales and marketing strategies through public health programs and medical examination centers.

Under the agreement, the companies will work together exclusively to co-market and co-promote HCCscreen™ in the hospital market, covering designated territories in China. The parties intend to target high-risk individuals for HCC, which include HBV-positive carriers, as well as other liver disease patients. CTTQ brings an experienced sales force and valuable hospital relationships to the partnership, while Genetron Health provides manufacturing and laboratory operations for its innovative product, HCCscreen™, along with its direct-to-consumer marketing expertise. Genetron Health will pay CTTQ a promotional fee based on a percentage of revenues generated from the collaboration. Contingent on certain sales and other requirements, the exclusivity period is expected to last three years. As a result of the agreement, Genetron Health expects HCCscreen™ revenues to further accelerate in China.

Sino Biopharm is one of the leading biopharmaceutical companies in China, with therapeutic areas spanning liver disease, oncology, orthopedics, infectious, respiratory, and cardiovascular and cerebrovascular diseases. Sino Biopharm recorded sales exceeding RMB 24 billion in 2019, of which liver drugs accounted for almost a quarter. CTTQ is Sino Biopharm's largest subsidiary, which focuses primarily on liver disease and oncology drugs R&D and manufacturing. In China, CTTQ had over 35% market share based on total hepatitis antiviral drug sales in 2018, according to IMS. In addition, CTTQ has a sales team of over 7,000 representatives and a network of over 2,000 general and liver disease-focused hospitals. Designated as a national key high-tech enterprise, CTTQ spends around 10-12% of revenues annually on research and development.

"We are excited to partner with Genetron Health as both companies are committed to developing innovative products for liver disease and oncology. HCCscreen™ presents an attractive opportunity to us because of its target uses in high-risk individuals for the early detection of HCC," said Eric Tse, Chairman of CTTQ. "We believe that our specialty, capabilities and network in the liver disease market represent a major sweet spot for this product. And more importantly, we are excited to introduce an innovative product that can potentially alleviate the heavy burden on liver cancer patients in China."

"Genetron Health strives to innovate while continuing to explore the commercialization roadmap for our products. For HCCscreen™, we have achieved success in expanding sales channels through medical examination centers and government procurement projects. Today's announcement marks a new channel focusing on the hospital market, and represents the third key commercialization initiative we have embarked on. CTTQ is an ideal partner for HCCscreen™ because of its liver drug franchise and significant sales and marketing strengths. We expect this strategic partnership to bring us closer to our goal of lowering liver cancer-related death rates in China," said Sizhen Wang, co-founder and CEO of Genetron Health.