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Corvus Pharmaceuticals, Inc. (NASDAQ: CRVS) declared on October 5, 2020, that it will collaborate with Angel Pharmaceuticals to facilitate the development and commercialization of its pipeline of precisely targeted investigational medicines in China.
Angel Pharmaceuticals is a new China-based biopharmaceutical company with a mission to bring innovative quality medicines to Chinese patients for treatment of serious diseases including cancer, autoimmune diseases and infectious diseases. It was formed as a Corvus wholly-owned subsidiary and was launched with a post-money valuation of $106 million, based on a $41 million cash investment from a Chinese investor group that includes funds associated with Tigermed and Betta Pharmaceuticals, Hisun Pharmaceuticals and Zhejiang Puissance Capital, which investments are subject to the satisfaction of certain customary conditions.
Contemporaneously with the financing, Angel Pharmaceuticals licensed the rights to develop and commercialize Corvus’ three clinical-stage candidates – ciforadenant, CPI-006 and CPI-818 – in greater China and obtained global rights to Corvus’ BTK inhibitor preclinical programs. Under the collaboration, Corvus will initially retain a 49.7% equity stake in Angel Pharmaceuticals and will be entitled to designate three individuals on Angel’s five-person Board of Directors.
Strategic Rationale for Corvus
- Establishes 49.7% ownership in a uniquely positioned biopharmaceutical company in the rapidly growing Chinese market.
- Clinical study synergies and accelerated timelines, whereby data from patients enrolled in China studies could potentially be used as part of U.S. regulatory submissions as part of a global pivotal study protocol.
- Research and development synergies, whereby Corvus will benefit from Angel’s research and development efforts and China’s deep pool of talented researchers.
- Establishes collaboration with leading Chinese investors, biopharmaceutical companies and scientists with experience in regulatory affairs, clinical development, manufacturing and commercialization.
Angel Pharmaceuticals will have recognized, skilled local pharmaceutical executives with management experience in worldwide companies in clinical, regulatory and research. At launch, the senior team comprises seven leaders that hold a medical degree or Ph.D., and the company intends to increase its team with leading scientific talent in China. In addition, Dr. Miller, a co-founder of Angel, will serve as Chairman of the Board and interim chief executive officer, working closely with the founding leadership team.
The Angel Pharmaceuticals Board of Directors will initially be comprised of:
- Richard Miller, chairman and chief executive officer of Corvus Pharmaceuticals
- Leiv Lea, chief financial officer of Corvus Pharmaceuticals
- Peter Thompson, Private Equity Partner with OrbiMed Advisors and co-founder and board member of Corvus Pharmaceuticals
- Ted Wang, chief investment officer of Puissance Capital