BioSense Global, a biotech firm, signed a $68 million option agreement with France's Neovacs for China rights to a vaccine aimed to treat systemic lupus erythematosus (SLE, or lupus) and dermatomyositis. The IFNa Kinoid is currently undergoing its Phase II trial.

The $68 million deal covers upfront and milestone payments, with future sales royalties not included, Yahoo reported. Except for the South Korea partnership, Neovacs, a leader in active immunotherapy for treatment of autoimmune diseases, retains rights for other regions. Biosense also receives first right of refusal in Greater China for further IFNα Kinoid indications such as type 1 diabetes.

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"We are pleased to be working with the BioSense team, who has a strong track record for successful clinical development and commercialization in China," Miguel Sieler, Neovacs CEO, said.

"We believe that IFNα Kinoid has significant medical value and commercial potential in Asia and China particular and we are very excited about the opportunity to bring this innovative product to meet the significant unmet medical needs in China and other selected markets," Andy Li, BioSense CEO, said.

Once Neovac's ongoing Phase IIIB trial for the IFNα Kinoid for lupus is completed, BioSense will receive commercial rights as both indications of lupus and dermatomyositis for China and selected territories like Hong Kong, Macao, Taiwan, and Singapore.

Under the agreement, the New Jersey-Suzhuo biotech firm BioSense will also finance a Phase III clinical trial for IFNα Kinoid in China and will seek regulatory approval on toher places. It will also shoulder all the expenses related to these development and regulatory-related incentives. Both BioSense and Neovacs will work on designing and conducting the next stage of clinical development strategy in China and other locations.

This is the second time Neovacs signed an agreement for the IFNα-Kinoid candidate. It made a strategic partnership with Chong Kun Dang Pharmaceutical for the South Korean market late in 2015.