Haisco Pharmaceutical Group Co., Ltd. (Shenzhen: 002653) announced on April 10 that it has entered into an exclusive licensing agreement with AbbVie (NYSE: ABBV) for the development of pain medicines.

Under the agreement, Haisco grants AbbVie exclusive rights to develop, manufacture, and commercialize novel pain treatment compounds globally, excluding mainland China, Hong Kong, and Macau. The program includes multiple compounds currently at various development stages in China, ranging from preclinical to Phase 1 clinical development.

Haisco will receive an upfront payment of $30 million and is eligible to receive up to $715 million in aggregate development, regulatory, and commercial milestone payments. The company is also eligible to receive tiered royalties on future net sales.

"This collaboration is highly aligned with our international development strategy and is expected to generate sustainable value and long-term returns," said Dr. Pangke Yan, chief executive officer of Haisco.

The Chinese pharmaceutical company has established research and development centers in Chengdu, Shanghai, and Silicon Valley. Haisco maintains over 50 research and development programs across therapeutic areas including pain management, oncology, respiratory diseases, autoimmune disorders, metabolic diseases, and central nervous system disorders, with more than 10 programs in pivotal clinical stages.

The company has invested more than 15% of revenue in research and development in each of the past three years, according to the press release statement.