Sidley Represents Jiangsu Nhwa Pharmaceutical in Its US$517.5 Million Licensing Transaction With Somnivera

Sidley represented Jiangsu Nhwa Pharmaceutical Co. in an agreement with newly formed biotechnology company Somnivera for the ex-China rights to a clinical-stage sleep disorder drug. Under the agreement, Jiangsu Nhwa will receive US$10.5 million upfront and is eligible for up to US$507 million in milestone payments. In addition, the company is eligible to receive royalty payments and share sublicense considerations. Jiangsu Nhwa will also receive a 15% equity stake in Somnivera, which was formed by ARCH Venture Partners, Population Health Partners, and F-Prime Capital to develop therapies for sleep disorders.

The Sidley team was led by Lila Hope (Technology and Life Sciences Transactions) and Steve Przesmicki (Emerging Companies and Venture Capital), and included Jean Qiu (Technology and Life Sciences Transactions); James Mendenhall (Global Arbitration, Trade and Advocacy); Chen Yang (Food, Drug and Medical Device); and Ash Nagdev and Ben Cross (Privacy and Cybersecurity).