As per the deal, the university will identify drug candidates in a co-funded laboratory led by its professor Shudong Wang.
Yabao Pharmaceuticals will offer cash and in-kind towards the drug discovery and development.
The company will have exclusive rights for developing and commercializing the drug candidates in China, while the university will retain rights in all other markets.
Yabao Pharmaceutical R&D president Peng Wang said the company is seeking to build relationships with organizations that have new programs to complement its development and commercial capabilities.
"We are thrilled to have the opportunity to work with the University of South Australia’s highly regarded scientists and laboratories to jointly find a way to develop important new treatments for cancer patients."
University of South Australia vice chancellor and president David Lloyd said: "We are thrilled to have forged such a strong collaboration in China that will enhance the development of new therapies for cancer, a disease that continues to present one of our greatest global challenges."
Yabao is undertaking strategic development of new pharmaceuticals apart from its business in modern traditional Chinese medicines and chemical generics.
Image: The University of South Australia will identify drug candidates in a co-funded laboratory led by its professor Shudong Wang. Photo: courtesy of University of South Australia.