Fosun Pharma licenses respiratory drug XH-S004 to Expedition in US$645M deal

CHINA—Fosun Pharma Industrial, a subsidiary of Fosun Pharma, has signed a licensing agreement with US-based Expedition Therapeutics to grant it rights outside China for the development of XH-S004, an experimental respiratory drug.

This deal enables Expedition to independently develop, manufacture, and commercialize XH-S004 worldwide, except in the Chinese mainland, Hong Kong SAR, and Macau SAR, where Fosun Pharma retains all rights.

XH-S004 is an orally administered dipeptidyl peptidase 1 (DPP-1) inhibitor designed to treat inflammatory respiratory diseases.

It works by reducing inflammation and helping to prevent the progression of infection cycles, offering new hope for patients with non-cystic fibrosis bronchiectasis and chronic obstructive pulmonary disease (COPD).

These conditions currently have limited treatment options, making XH-S004 a potentially groundbreaking therapy.

The drug is currently being tested in China through clinical trials.

It is in Phase II trials for non-cystic fibrosis bronchiectasis and Phase Ib trials for COPD.

As no similar small-molecule oral DPP-1 inhibitors have yet been approved globally, XH-S004 could become a pioneering treatment if it successfully passes regulatory approvals.

Under the terms of the agreement, Expedition will invest significant financial resources into the project.

 The company will provide up to US$120 million in upfront and development milestone payments.

 Additionally, if the drug meets certain sales milestones within the licensed regions, Expedition may pay Fosun Pharma as much as US$525 million more throughout the contract.

Fosun Pharma’s chairman, Chen Yuqing, expressed optimism about the partnership, saying that collaborating with Expedition will combine the strengths and expertise of both organizations.

He emphasized that this cooperation would help accelerate the global development and commercialization of XH-S004, making the innovative treatment accessible to patients worldwide as soon as possible.

Expedition Therapeutics’ chairman and CEO, Yi Larson, also highlighted the significance of the collaboration.

He described XH-S004 as an exciting medicine that targets neutrophilic inflammation, an underlying cause of multiple chronic respiratory diseases.

 Larson said they look forward to working closely with Fosun Pharma to advance the drug’s development for COPD and other similar inflammatory diseases.

He acknowledged the large unmet medical need these conditions present and expressed a strong commitment to delivering new treatment options to patients

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