TOKYO: Takeda Pharmaceutical Co has signed an option agreement with Chinese drug developer Ascentage Pharma Group International for the development of a blood-cancer drug, as the Japanese drug maker attempts to revive its drug pipeline and boost growth.

Takeda will have the option to exclusive marketing for Olverembatinib outside of mainland China, Hong Kong, Macau, Taiwan and Russia, the Japanese company said in statement.

The drug, under development, is designed to treat a rare form of bone-marrow cancer called chronic myeloid leukemia and other blood cancers.

Ascentage Pharma would get US$100mil from Takeda for the licensing deal, and would be eligible for an option exercise fee and additional potential milestones of up to US$1.2bil, together with double-digit royalties on annual sales, the Chinese company said in a statement.

Ascentage will begin late-stage clinical development of the drug prior to any exercise of the option, the Hong Kong-traded company said.

As part of the deal, Takeda will take an unspecified minority stake in Ascentage.

Takeda, grappling with the loss of patent protection for its blockbuster ADHD medicine Vyvanse, said last month it will streamline its workforce and lean more heavily on data and technology to improve growth and profit margins.

It will also rigorously prioritise its research and development pipeline under a multi-year restructuring programme.

Tokyo-based Takeda agreed in May to develop AC Immune SA’s immunotherapies targeting toxic, abnormal proteins in Alzheimer’s patients’ brains in a licensing deal worth as much as US$2.2bil.

 -Bloomberg