SINGAPORE - Singapore-based biotech company Tessa Therapeutics and China-Singapore Guangzhou Knowledge City (CSGKC) have formed a US$120 million ($164 million) joint venture (JV) in China to develop cell therapies for cancer.

CSGKC, a greenfield development by Ascendas-Singbridge and Guangzhou Development District, will contribute US$80 million and Tessa will provide the remaining US$40 million.

The funding will be done in two stages. In the first stage, CSGKC will contribute US$40 million for a 13 per cent stake in the JV. Tessa will contribute US$20 million and its technology licence rights for China, and hold the remaining 87 per cent stake. The company did not disclose information about the second stage.

The JV will be the sole licensee of Tessa's cell therapies for research, clinical development and commercialisation in China.

The JV's immediate strategic priorities will focus on conducting clinical trials in China for Tessa's cell therapies, which target prevalent cancers in the country for patients with haematological malignancies and solid tumours, said Tessa.

This will be done by building up operational capabilities and adding clinical trial sites in China into Tessa's global clinical trial network, added the company.