Sino Biopharmaceutical has signed an exclusive global licensing agreement ‌with Sanofi for the rights to rovadicitinib, in a transaction valued at up to $1.53 billion. The drug was recently approved in China as a first-line treatment for various forms of intermediate-2 or high-risk myelofibrosis and is in late-stage development for chronic graft-versus-host disease.

Under the agreement, Sanofi gains an exclusive worldwide license to develop, manufacture and commercialize rovadicitinib. Sino Biopharm will receive an upfront payment of $135 million and is eligible to receive potential development, regulatory and sales ‌milestones of as much as $1.4 billion.

Rovadicitinib is an oral JAK/ROCK inhibitor that targets inflammation and tissue scarring by blocking enzymes that drive both processes.

The deal is subject ⁠to customary closing conditions.