Biopharmaceutical giant Bristol-Myers Squibb Co, based in New York, and Simcere Pharmaceutical Group, China's leading drugmaker, announced on Tuesday they will be working together to develop and market a new treatment for rheumatoid arthritis.

The companies will collaborate in China on the development and commercialization of a subcutaneous variation of Bristol-Myers Squibb's medicine for rheumatoid arthritis. The medicine is already on the market in the United States, Europe and Japan.

Under the terms of the agreement, Simcere will fund the development and acquire market approval for the medicine in China. The companies will share responsibility for marketing the therapy; profits and losses will be borne by both companies in China. Financial terms were not disclosed.

The new project is an extension of the two companies' partnership, said Simcere Chairman Ren Jinsheng. Simcere and Bristol-Myers Squibb, in 2010 and 2011, agreed to develop and commercialize oncological and cardiovascular treatments.

Bristol-Myers Squibb, which has a 30-year presence in China, has partnered with a number of Chinese entities, such as companies, medical institutes and universities, to explore China's medical market and serve Chinese patients, said Jean-Christophe Pointeau, the company's president of its China division.

“Market demand on rheumatoid arthritis medicine in China is huge, and our cooperation will benefit Chinese patients,” Pointeau said.