Oyster Point Pharma, Inc. announced an exclusive license and collaboration agreement with Ji Xing Pharmaceuticals (Ji Xing) to develop and commercialize OC-01 (varenicline) and OC-02 (simpinicline) nasal sprays for the treatment of signs and symptoms of dry eye disease for patients in Greater China. Ji Xing is a biotechnology company headquartered in Shanghai and founded by RTW Investments, LP (RTW), focused on bringing breakthrough medicines to underserved Chinese patients with refractory, serious and life-threatening diseases. Under the terms of the agreement, Oyster Point will grant Ji Xing an exclusive license to develop and commercialize both OC-01 (varenicline) and OC-02 (simpinicline) in patients with ophthalmic diseases in Greater China. Oyster Point will receive an upfront payment consisting of $17.5 million in cash and up to 0.75% of shares in Ji Xing, half of which is subject to a pre-specified vesting condition. In addition, Oyster Point is eligible to receive up to $204.8 million in milestone payments and tiered royalties based on future net sales of OC-01 and OC-02 in Greater China. Ji Xing intends to manufacture OC-01 and OC-02 locally in China and will be responsible for development and commercialization costs in its licensed territory.