SK Biopharm said it launched a biotech company Ignis Therapeutics (Ignis), with 6 Dimensions Capital (6D), a healthcare investment firm based in Shanghai, to build a new drug development and commercialization platform in China.

The establishment of Ignis in China led SK Biopharm to enter the top-4 global pharmaceutical markets, including the U.S., Europe, Japan, and China.

SK Biopharm licensed out six central nervous systems (CNS) drug pipelines, including cenobamate marketing in the U.S. and Europe, to Ignis for an upfront payment of $20 million, a milestone payment of $15 million, and royalties on net sales in the future. In addition, the Korean drug company plans to acquire 150 million shares of Ignis by Dec. 23. 

SK Biopharm and 6D raised $180 million in Series A funding to establish Ignis, the largest amount of Series A round invested in the Chinese drug market in 2021.

Led by 6D, Global investors, including Goldman Sachs, WTT Investment, HBM Healthcare Investment, Mubadala, and KB Investment, also joined the funding.

SK Biopharm and 6D have appointed Eileen Long, former head of Sanofi China’s CNS business unit, as CEO of Ignis.

“Founding Ignis Therapeutics will be an important milestone in expanding our position in the Chinese market and providing innovative treatment options to patients,” SK Biopharm CEO Cho Jeong-woo said. “We will focus on delivering social values while speeding up our global growth based on advancement to China.”

6D CEO Leon Chen also said, “We made a significant achievement by partnering up SK Biopharm, and we believe Ignis will grow into a leader in the CNS field with excellent capabilities in both research and commercialization.”

In response, Ignis’ newly named CEO Eileen Long said that CNS diseases have high unmet needs for new therapeutics.

“Collaborating with SK Biopharm will expand our portfolio and provide new therapeutic options to patients in Greater China,” Long said.