AriBio, a biotech firm specializing in medicines for neurodegenerative and infectious disease, said Wednesday it has signed a memorandum of understanding for strategic collaboration with Shanghai Pharmaceuticals, the second-largest pharmaceutical distributor in China.

The main contents of the MOU include:

- Collaboration for the success of AR1001 Phase 3 clinical trial in China (joint research and provision of top-tier clinical trial sites such as hospitals with extensive networks).

- Stable and successful commercialization of AR1001 in China through the largest imported drug distribution channel in China.

- Stable new drug production lines using global drug manufacturing facilities and production lines (GMP).

In preparation for the strategic agreement, the companies entered into a confidentiality disclosure agreement (CDA) in early 2023 and have been conducting a comprehensive technical feasibility study. Following the agreement, the two companies will begin joint clinical development and practical procedures for full-scale market entry.

Shanghai Pharmaceuticals is a Fortune Global 500 company and ranks among the top 50 pharmaceutical companies globally, with 2022 sales of about $35 billion (37 trillion won). It has a distribution network spanning 31 provinces, municipalities, and autonomous regions in China and provides service for more than 32,000 medical institutions.

"As a global pharmaceutical company, Shanghai Pharmaceuticals is a strong ally with its clinical development capabilities and extensive distribution network," AriBio CEO Cheong Jae-jun said. "This agreement paves the way for AriBio's commercialization of AR1001 in China, including ensuring successful sales after phase 3 clinical trial approval."