Chinese drugmaker Simcere Pharmaceutical Group is to make and sell a cheap version of GlaxoSmithKline Plc's flu drug Relenza for use in Asia and other poor countries, the British group said on Thursday, according to Reuters. Relenza is an inhaled antiviral medicine which, like Roche's pill Tamiflu, is seen as a first line of defence in the event of an influenza pandemic triggered by bird flu. The licensing deal gives Simcere of Nanjing the right to manufacture and sell zanamivir -- the active ingredient in Relenza -- in China, Indonesia, Thailand, Vietnam and all least developed countries. "This agreement with Simcere is intended to expand available supplies of zanamivir in areas of the world that may be on the front line of a possible influenza pandemic," Glaxo's head of pharmaceutical operations, David Stout, said in a statement. Simcere, however, has not given a commitment to make any particular quantity of the medicine. Nearly 150 people, mostly in Asia, have died after becoming infected with the H5N1 bird flu virus. Health experts fear H5N1 could eventually mutate into a strain easily transmitted from person to person, triggering a pandemic killing millions. Drugs such as Tamiflu and Relenza -- which is less popular because it must be given via an inhaler -- will not prevent a future pandemic but could mitigate its effects, since they reduce the severity of flu and should slow its spread. Glaxo's licensing deal follows similar steps by its Swiss rival Roche, which has also brought in partners to step up production of Tamiflu. Glaxo, Europe's biggest drugmaker, announced several months ago that it was seeking partners for Relenza but this is the first deal it has managed to strike. Simcere will not make any upfront or milestone payments but Glaxo will earn royalties on future sales, except for those made in least developed countries where the British company operates on a not-for-profit basis, a Glaxo spokesman said. Glaxo's partner Biota Holdings Ltd of Australia, which originally discovered Relenza, will earn a royalty in all territories.