The commercialization of the product will be done in Hong Kong and Macao Special Administrative Regions and Taiwan.
As part of the deal, Eddingpharm will oversee the clinical development, registration and commercialization of anti-TNFa Nanobody therapeutics in China.
The Belgian firm will have access to the clinical data generated by Eddingpharm to support potential licensing discussions in other geographic regions.
In return, Ablynx will receive an upfront payment of €2m, payable in two tranches.
Ablynx is also entitled to receive development and commercial milestone payments plus tiered, double-digit royalties of up to 20%, based on annual net sales of ozoralizumab.
Ablynx CEO Dr Edwin Moses said the company is happy to have expanded its relationship with Eddingpharm beyond the license agreement that we signed in 2013 for its anti-RANKL Nanobody, ALX-0141, for the treatment of bone related disorders.
"China is a huge and developing market, and we believe that Eddingpharm is well-positioned to further develop and commercialise ozoralizumab in Greater China based on their deep knowledge of the local market, clinical development expertise and our Nanobody’s potential in the treatment of inflammatory diseases, including RA," Moses said.
Ozoralizumab consists of two nanobodies targeting TNFa, which are linked to a nanobody that binds to human serum albumin, extending the drug’s half-life in vivo and improving its distribution to inflamed joints.