South Korean pharmaceutical company SK Bioscience said Monday that it has joined forces with French drugmaker Sanofi to develop an advanced pneumococcal conjugate vaccine targeting infants, young children and adults.

Under the agreement, SK Bioscience will receive an upfront payment of 50 million euros ($52 million) from Sanofi, along with additional milestone payments at each stage of development. The two companies will equally share research and development costs, with Sanofi covering any additional expenses required for commercialization.

SK Bioscience will handle sales in Korea, while Sanofi will manage distribution in international markets. Pneumococcal conjugate vaccines currently account for approximately 94 percent of the global pneumococcal vaccine market. According to Evaluate Pharma, the market is expected to expand at a compound annual growth rate of 4.7 percent, from 11.9 trillion won ($8 billion) this year to 14.2 trillion won by 2028.

SK Bioscience and Sanofi have been collaborating to develop GBP410, a 21-valent pneumococcal conjugate vaccine. Last week, the companies began a global phase 3 clinical trial and administered a dose to the first patient. They also initiated the expansion of vaccine manufacturing facilities in March.

“Given the vast unmet public health needs in IPD, we’re delighted to continue our pursuit of innovative work in PCV. Our collaboration aims to reduce the global impact of pneumococcal disease,” said Thomas Triomphe, executive vice president at Sanofi.

SK Bioscience CEO Ahn Jae-yong added, “This partnership reflects the trust and confidence we've built with our counterpart. We will do our utmost to deliver advanced pneumococcal vaccines to the market.”

By Park Min-ha (en23mp@heraldcorp.com)