Herbert Smith Freehills Kramer and its China joint operation partner Kewei have advised Fosun Pharma on an exclusive option agreement with South Korea-based biopharmaceutical company AriBio.

Under the agreement, AriBio will continue developing AR1001, an Alzheimer’s disease drug candidate currently in a global Phase 3 clinical trial. Fosun Pharma has secured the option to obtain exclusive rights for the drug’s further development, registration, manufacturing, and commercialisation.

The deal expands Fosun Pharma’s existing AR1001 rights beyond mainland China, Hong Kong, Macau, and 10 ASEAN countries to additional territories including the US, Europe, and Japan.

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“We are delighted to have supported Fosun Pharma on this important transaction involving a promising drug candidate for Alzheimer’s disease,” said Gavin Guo, Managing Partner of Herbert Smith Freehills Kewei Joint Operation. “This agreement also reflects the increasing use of sophisticated option-based structures in the global life sciences sector.”

“The transaction involved complex option and licensing arrangements across multiple jurisdictions,” said Melanie Bouton, Executive Counsel of Herbert Smith Freehills Kramer. “We worked closely with the client to structure a framework securing exclusive rights to the further development and commercialisation of AR1001.”

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The agreement follows an option fee and licence payment structure, with Fosun Pharma set to pay US$60 million as an option fee and up to US$180 million in upfront and regulatory milestone payments upon exercising the option.

The firms also advised on the full suite of transaction documents, including the option and exclusive licence agreement, alongside New York law aspects related to the cross-border transaction.