AstraZeneca (AZN) has signed a deal worth up to $2.1 billion with Sino Biopharmaceutical's unit, Chia Tai Tianqing Pharmaceutical, for the development, manufacturing and commercialization of the Chia Tai Tianqing's chronic respiratory disease drug candidate TQC3721, Sino Biopharmaceutical said Wednesday.

The deal stipulates that Chia Tai Tianqing will receive an upfront payment of $200 million to grant AstraZeneca an exclusive license to develop, manufacture and commercialize TQC3721 outside China, Sino said.

The deal includes additional development, regulatory and sales milestones totaling up to $1.9 billion, as well as tiered royalties ranging up to double-digit percentages based on annual net sales, Sino said.

A nebulized formulation of the drug currently being evaluated in a late-stage clinical trial in China, while a dry powder inhaler formulation is undergoing a mid-stage trial, the company said.