CJ HealthCare announced on January 31 that it signed a contract with NCPC GeneTech Biotechnology to export CJ-40001, a second-generation erythropoietin (EPO) biosimilar.
According to the contract, CJ HealthCare transfers its technology for the production of CJ-40001 to the Chinese company in return for annual sales royalties and licensing fees and NCPC GeneTech Biotechnology becomes the only company entitled to conduct clinical trials regarding CJ-40001 and produce and sell the biosimilar in China.
The global second-generation EPO market had a size of approximately three trillion won in 2016 and the size of the market is continuing to grow. In China, a market worth about 300 billion won is expected to be formed once second-generation EPO products are released.
Based on the technology transfer agreement, NCPC GeneTech Biotechnology is expected to account for one-third of the Chinese market down the road. NCPC GeneTech Biotechnology is a subsidiary company of North China Pharmaceutical Company (NCPC), which is headquartered in Shijiazhuang, China.