SK biopharmaceuticals said Thursday it has signed a technology transfer agreement with a Chinese joint venture company, Ignis Therapeutics, for a non-narcotic pain treatment candidate worth 80.4 billion won ($58 million).

Under the agreement, SK biopharmaceuticals will transfer the global development and commercialization rights of SKL22544, a non-narcotic pain treatment candidate, to Ignis Therapeutics.

The total value of the agreement is $58 million (about 804 billion won), including a non-refundable upfront payment of $3 million and up to $55 million in development and licensing milestones.

In addition, SK biopharmaceuticals will receive an ongoing technology fee based on net sales. The term of the agreement is 10 years after the product launch, the termination of the product protection patent, or the termination of the license exclusivity, whichever is later.

Besides, SK biopharmaceuticals will have the right of first refusal to acquire U.S. territorial rights until Ignis Therapeutics completes its phase 2a clinical trial of SKL22544 and the right to acquire Korean sales rights at no cost.

SK biopharmaceuticals expects the agreement to accelerate the development of its discovery-stage candidates. The company emphasized that there has been a significant need for non-narcotic pain treatments to replace narcotic pain medications that are effective but have serious side effects, such as addiction.

"Our securing of SK biopharmaceuticals' excellent pipeline is significant as it gives us access to a market with high potential for future growth," Ignis Therapeutics CEO Eileen Long said. "We look forward to expanding our existing central nervous system pipeline with new candidates and pipeline to meet market expectations."

SK biopharmaceuticals CEO Lee Dong-hoon said, "As the largest shareholder of Ignis Therapeutics, SK biopharmaceuticals expects to continue to collaborate with Ignis Therapeutics in the field of efficient R&D. We will do our best to become a global big biotech through various collaborations with internal and external partners."