3SBio, Inc. (NASDAQ: SSRX), a China-based biotechnology firm, and Isotechnika Pharma Inc. (TSX: ISA), a Canadian biopharmaceutical company focused on the discovery and development of immune modulating therapeutics, said they have signed a development and commercialization agreement for voclosporin, a next generation calcineurin inhibitor being developed for use in the prevention of organ rejection following transplantation and the treatment of autoimmune diseases.

Under the terms of the agreement, Isotechnika will grant 3SBio exclusive rights to all transplant and autoimmune indications of voclosporin in China, including Hong Kong and Taiwan, excluding ophthalmic indications and medical devices which were previously licensed to Lux Biosciences, Inc. and Atrium Medical Corp., respectively.

3SBio will be responsible for the clinical development, registration and commercialization of voclosporin in China.  Isotechnika will provide, under separate agreement, commercial supply to 3SBio on a cost-plus basis.

Isotechnika will receive an upfront non-refundable licensing payment of $1.5 million.  Isotechnika will also receive ongoing royalties based on sales of voclosporin by 3SBio.

3SBio will invest the $4.5 million in Isotechnika through a three-year convertible debenture, which will pay interest of 7% payable semi-annually.  Isotechnika has the option to pay interest in cash or to issue new shares at the prevailing price when the interest is payable.  3SBio has the right to convert the debenture at any time into common equity of Isotechnika at coversion price of CDN$0.155 per share.

At maturity, any remaining balance will be paid by the issuance of common shares at a price of CDN$0.155 per share.  3SBio will also nominate one member to Isotechnika's board of directors.

China-based 3SBio is a biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products primarily in China.  Its focus is on addressing large markets with significant unmet medical needs in nephrology, oncology, supportive cancer care, inflammation and infectious diseases.

Canada-based Isotechnika Pharma Inc. is a biopharmaceutical company focused on the discovery and development of immunomodulating therapeutics that are designed to offer advantages over other currently available treatments.

Voclosporin, Isotechnika Pharma's lead drug candidate, has completed a Phase 2b study for the prevention of kidney rejection following transplantation and a Phase 3 European/Canadian trial for the treatment of moderate to severe psoriasis.