Clinical-stage biotechnology company ElpasBio Holdings announced on Tuesday that it has entered into a collaboration agreement with Fosun Kairos, the core cell therapy platform of China-based Fosun Pharma (SSE:600196; HKEX:2196).

This agreement covers the commercialisation of ElpasBio's investigational allogeneic human adipose-derived mesenchymal stem cell (haMPC) therapy, lotazadromcel (trade name AlloJoin) for the treatment of knee osteoarthritis (KOA), in Mainland China, Hong Kong SAR, and Macau SAR.

Under the terms of the agreement, ElpasBio will receive an upfront payment and milestone payments. ElpasBio will continue to be responsible for the development, regulatory registration, and manufacturing of AlloJoin in Mainland China, Hong Kong SAR, and Macau SAR, and will retain all commercialisation rights outside these territories.

Tony (Bizuo) Liu, ElpasBio chairman, said: "Fosun Kairos carries extensive experience in the commercialisation of cell therapies in China, providing a strong foundation for a robust and mutually beneficial partnership. AlloJoin is the first stem cell drug approved in China to enter into a Phase III pivotal clinical trial with the disease modifying potential for the treatment of KOA. We believe this collaboration will accelerate the successful commercialisation of AlloJoin in China and bring us closer to addressing the significant unmet medical needs of KOA, a degenerative disease."