Gilead Sciences (GILD) and China's Qinhao Pharmaceutical (Suzhou), also known as Genhouse Bio, entered into a global collaboration agreement for GH31, Qinhao's synthetic-lethal MAT2A inhibitor being developed for multiple tumor types.

Genhouse said Friday in a statement on WeChat that it will receive an $80 million upfront payment from Gilead and is eligible for up to $1.45 billion in development, registration and commercialization milestone payments, as well as tiered double-digit royalties on net sales.

Gilead will be responsible for the global development, registration filing and future commercialization of the drug, Genhouse said. GH31 has received investigational new drug clearance in the US and China, enabling immediate global clinical development, according to the statement.

"Introducing the GH31 project is a prudent strategy for us to expand Gilead's oncology pipeline through scientific innovation and strengthened partnerships," Jackson Egen, senior vice president of oncology research, said in the statement.

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