Young inflammatory disease biotech Expedition Therapeutics is paying $17 million cash for licensing rights to an investigational DPP-1 inhibitor from Fosun Pharma.
Shanghai-based Fosun is handing over global rights to develop and commercialize a clinical candidate called XH-S004, except in mainland China, Hong Kong and Macau, according to an Aug. 11 release (Chinese, PDF).
In return, Expedition is offering the pharma the chance to make up to $103 million in development and regulatory biobucks, as well as up to $525 million in sales milestones, plus royalties.
The deal revolves around XH-S004, an oral small molecule designed to block DPP-1 and subsequently decrease inflammation.
The investigational oral drug is currently being evaluated in a recently launched phase 2 trial in China for non-cystic fibrosis bronchiectasis, a chronic lung condition in which the airways expand permanently.
The candidate is also undergoing phase 1b testing in China for chronic obstructive pulmonary disease, a group of lung diseases that make it harder to breathe.
Currently, no drug with the same molecular mechanism has received global approval, according to the release.
Now, startup Expedition will work with Fosun to develop the drug outside of China.
The U.S.-based biotech emerged last year with a mission to bring China-developed therapeutic candidates stateside for global development, according to the company’s LinkedIn page.
Expedition Therapeutics is backed by founding investors Venrock, BVF Partners and Hong Kong’s Lake Bleu Capital.
The biotech is helmed by Yi Larson, who has prior experience at Goldman Sachs and served as chief financial officer at Lian Bio and Turning Point Therapeutics before the latter’s 2022 acquisition by Bristol Myers Squibb.