Sino Biopharmaceutical (HKG:1177) said subsidiary Chia Tai Tianqing Pharmaceutical Group signed an exclusive licensing agreement with AstraZeneca to develop, manufacture and commercialize its PDE3/4 inhibitor TQC3721 outside China.

TQC3721 is an inhaled drug candidate being developed for respiratory diseases, according to a Wednesday Hong Kong bourse filing.

Under the agreement, the group is eligible to receive an upfront payment of $200 million, as well as development, regulatory and sales milestone payments of up to $1.9 billion and tiered royalties based on annual net sales. AstraZeneca also obtained exclusive global rights to certain development programs in future.

The agreement is subject to customary closing conditions, including regulatory approvals.