Ascent Bridge (SGX:AWG) signed a cooperation framework agreement with Scinosen (Shenzhen) Gene Industry Development to establish a joint venture in Singapore, according to a Thursday bourse filing.
The joint venture will focus on building gene therapy treatment centers in Singapore and China, along with the sales and marketing of gene therapy drug Gendicine, a commercially approved recombinant human p53 gene therapy injection used in oncology treatments
Under the finalized equity allocation framework, Ascent Bridge will maintain controlling interest with a stake capped at 70.1%, while Scinosen will retain an equity slice of no less than 19.9%.
Following its establishment, the joint venture will pay Scinosen 20 million yuan in cash as upfront payment. A secondary tranche of 30 million yuan will be disbursed upon securing final product and facility clearances from relevant state medical authorities.
Additionally, the joint venture will pay Scinosen an amount of up to 1 billion yuan as part of sales milestone payments based on the actual net sales of Gendicine.
The new venture is part of the company's strategy to expand within the gene therapy and precision medicine sectors.
Shares of the company surged nearly 48% in Thursday afternoon trading.