MedImmune, AstraZeneca’s biologics division, is teaming up in a joint venture with the Chinese contract research and development outsourcing company WuXi AppTec to develop and commercialize a novel biologic for autoimmune and inflammatory diseases in China.

The compound, MEDI5117, has been designed to have a long duration of action and is currently being evaluated in early stage clinical trials in the United States and Europe in autoimmune and inflammatory diseases such as rheumatoid arthritis. MEDI5117 is a fully human antibody that targets IL-6, known as an important mediator in the production of inflammation and pain in a variety of disease states.

MedImmune is partnering with WuXi in China to be able to begin clinical trials in the country as the Chinese government requires local manufacture of medicines that have not been approved in other markets in order to develop and commercial a drug in the country. As part of their 50/50 joint venture, MedImmune will provide technical and development expertise while WuXi will provide local regulatory, manufacturing, pre-clinical and clinical trial support.

“This strategic partnership will enable us to establish a leadership presence in developing novel biologics in China, complementing AstraZeneca’s investment in this important emerging market,” says Bahija Jallal, executive vice president of research and development at MedImmune.

The joint venture will control the development of MEDI5117 for autoimmune and inflammatory diseases in China. MedImmune is retaining the option to acquire full rights to commercialize MEDI5117, and if it does not exercise its option, the joint venture will have the right to commercialize the product. WuXi will earn revenue based on services provided to the joint venture, while MedImmune will receive various milestone payments as the program progresses.

“WuXi is working to build long-term drug development partnerships with leading biopharmaceutical companies like MedImmune to help accelerate the development of novel medicines for the large and rapidly growing Chinese pharmaceutical market,” says Ge Li, chairman and CEO of WuXi.

The Chinese government’s focus on healthcare reform, along with its investment in improving healthcare infrastructure and expanding medical insurance coverage, are expected to continue to drive growth and demand for quality medicines over the long term. The government has pledged to improve the country’s healthcare infrastructure and expand access to healthcare for most of its citizens. It has also focused on biopharmaceuticals for long-term economic growth, and continues to increase its biomedical R&D investment. The Chinese pharmaceutical market grew from $10 billion in 2004 to $41 billion in 2010 and, according to IMS Health, is projected to grow to over $100 billion by 2014.