(PHOTO / IC)

FRANKFURT — German pharmaceutical company BioNTech on Monday announced its strategic alliance with the pharmaceutical arm of China's Fosun Group for the development and commercialization of the COVID-19 vaccine in China.

The German company, headquartered in Mainz, and Fosun Pharma industrial, a subsidiary of Shanghai Fosun Pharmaceutical (Group) Co, Ltd, will jointly conduct clinical trials of BioNTech's mRNA-based vaccine in China, BioNTech said in a statement.

We see this collaboration as an important step in our global effort to expedite the development of our mRNA vaccine to prevent COVID-19 infection

Ugur Sahin, Founder and CEO of BioNTech

ALSO READ: Xi calls for accelerated vaccine push

The collaboration will leverage BioNTech's proprietary mRNA technology and Fosun Pharma's clinical development and commercialization capabilities in China, the German company said.

Fosun Pharma will pay BioNTech up to US$135 million in upfront and potential future investment and milestone payments, which includes an equity investment of 50 million dollars in BioNTech shares that is subject to Chinese regulatory approval.

"We see this collaboration as an important step in our global effort to expedite the development of our mRNA vaccine to prevent COVID-19 infection," said Ugur Sahin, founder and CEO of BioNTech.

READ MORE: Vaccine will require teamwork

A potential pandemic requires a collective effort and both companies are passionate about contributing to the fight against the current coronavirus outbreak, said Wu Yifang, President and CEO of Fosun Pharma.

Under the agreement, Fosun Pharma will commercialize the vaccine in China upon regulatory approval, while BioNTech retains the rights to develop and commercialize the vaccine in the rest of the world.