Yan Kaijing (left), executive chairman of Tasly, and Yuji Matsue (right), chairman of EA Pharma, ink a deal on AJT-240 at Tasly's headquarter in Tianjin on Wednesday. Photo: Courtesy of Tasly

Chinese pharmaceutical company Tasly Pharmaceutical Group has signed a $24 million licensing agreement plus royalties with Japan's EA Pharmaceutical Co on a drug used to treat a complication of kidney disease.

Under the agreement, Tasly will have the rights and interests to develop, produce and commercialize EA Pharma's new drug AJT-240 in the Chinese market.

AJT-240 is used to treat a calcium disorder that occurs as a complication of end-stage renal impairment and hemodialysis.

AJT-240 is expected to complete multicenter second-phase clinical trials in Japan in 2018.

Tasly said the potential introduction of the new drug is in line with its globalization drive and will boost its product line-up for chronic diseases.

"The cooperation with EA Pharma will significantly shorten waiting times for Chinese patients for the world-class new drug and improve the treatment of Chinese patients suffering from chronic kidney disease," said Yan Kaijing, executive chairman of Tianjin-based Tasly, which is best-known for its T89, a cardiotonic pill.

"If this new drug successfully lands in China, it will provide a previously unavailable cure for such complications," Yan told the Global Times on Wednesday. "Through negotiations with the medical authorities, the price for the drug could be affordable enough to benefit more patients."

According to the Chinese Epidemiological Survey in 2012, there are about 2 million patients with middle- and late-stage kidney disease in China, but the dialysis rate is less than 20 percent, compared with 90 percent in developed countries. As more Chinese patients turn to dialysis, the market for AJT-240 could be significant.

Yuji Matsue, chairman of EA Pharma, told the Global Times on Wednesday that cooperation with a Chinese partner will greatly reduce the difficulty in introducing a new drug into the Chinese market. A Chinese regulatory change that allowed the sharing of clinical trials' results also helped.

Li Tianquan, co-founder of domestic healthcare big data platform yaozh.com, told the Global Times on Wednesday that cooperation with Japanese pharmaceutical companies by Chinese counterparts will speed up the process of advanced drugs landing in the Chinese market.