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U.S. drug company AMAG Pharmaceuticals Inc. (AMAG) announced Tuesday that it has signed an agreement with 3SBio Inc. (SSRX) to develop the market in China for ferumoxytol, an iron deficiency anemia drug produced by AMAG.

The product, ferumoxytol, is an intravenous iron replacement drug for treating iron deficiency anemia among chronic kidney disease [CKD] patients. It will enter the Chinese pharmaceutical market through the cooperation between AMAG Pharma and 3SBio.

AMAG Pharma chose 3SBio as its partner to develop the product in China due to 3SBio's leading position in the nephrology therapeutic market, its strong sales network across the country and its rich marketing experience, according to the announcement.

According to the terms of the agreement, 3SBio is AMAG Pharma's exclusive partner in China for developing ferumoxytol in the country, including promoting the use of the product in clinical trials, getting approval from the State Food and Drug Administration, as well as expanding the product's market share.

AMAG Pharma and 3SBio will set up a joint steering committee, made up by an equal number of representatives of each company, to guide the development of the product in China. The agreement will last for 13 years and will be renewed depending on sales performance.

In addition, AMAG Pharma will receive an advance payment of $1 million from 3SBio.

3SBio listed on the Nasdaq in February last year. It is mainly engaged in the manufacture, research and development and marketing of biopharmaceutical products in China.

Source: AMAG Pharma, 3SBio Partner to Develop Ferumoxytol Market in China