HEC CJ PHARM(01558): Guangdong Hec Technology Holding and Apollo Company have reached a licensing agreement for the development and commercialization of HEC88473 project.

HEC CJ PHARM (01558) and the offeror Guangdong Hec Technology Holding Pharmaceutical Co., Ltd. jointly announced on November 12, 2024, that Guangdong Hec Technology Holding Pharmaceutical Co., Ltd. (hereinafter referred to as Guangdong Hec Technology Holding Medicine) and Apollo Therapeutics Group Limited (hereinafter referred to as Apollo) have reached an agreement on the authorization and licensing of the HEC88473 project independently developed by Guangdong Hec Technology Holding Medicine. Guangdong Hec Technology Holding Medicine granted Apollo the exclusive development and commercialization rights of HEC88473 in regions outside the Greater China area, while reserving the development and commercialization rights in the Greater China area. According to the terms of the agreement, Guangdong Hec Technology Holding Medicine is expected to receive up to 938 million US dollars during the validity period of the agreement, including an initial payment of 12 million US dollars and a maximum of 926 million US dollars in development, regulatory, and commercial milestone payments. Development milestone payments depend on reaching the research stage stipulated in the agreement. Regulatory milestone payments depend on obtaining approvals from specific regulatory agencies. Commercial milestone payments depend on reaching the agreed annual sales in major markets. Additionally, if and when HEC88473 is successfully commercialized outside the Greater China area, Guangdong Hec Technology Holding Medicine may receive royalties based on a percentage of net sales outside the Greater China area during the subsequent commercialization process within the validity period of the agreement. The agreement is valid for at least ten years from the signing date to the first commercial sale date. Guangdong Hec Technology Holding Medicine adheres to an innovative and internationalization strategy, taking it as its mission to develop drugs that address unmet clinical needs and has achieved a series of significant accomplishments in areas such as metabolism, oncology, and infectious diseases. HEC88473 (APL-18881) is currently a leading global FGF21/GLP-1 dual receptor agonist in clinical development with indications for type 2 diabetes, which is currently in phase II clinical trials in China. Dr. Zhang Yingjun, Chairman of Guangdong Hec Technology Holding Medicine, said, "This collaboration signifies a further deepening of Guangdong Hec Technology Holding Medicine's global layout in research and development, production, and sales and is an important milestone in the company's commitment to high-quality and high-standard innovative R&D. We look forward to closely collaborating with Apollo in the global development of this project. HEC88473 is a leading FGF21 and GLP-1 dual receptor agonist in global development, demonstrating strong therapeutic potential with its differentiated mechanism of action. By combining Guangdong Hec Technology Holding Medicine's deep expertise in the treatment of metabolic diseases with Apollo's international vision and clinical expertise, we will greatly accelerate the global development of this new therapy to benefit patients as soon as possible." Dr. Richard Mason, CEO of Apollo, said, "This transaction further advances our strategy of building a large and diversified clinical project portfolio in unmet clinical needs. The research results already completed by Guangdong Hec Technology Holding Medicine demonstrate the clinical potential of this new FGF21 and GLP-1 dual agonist in multiple disease areas. We are delighted to collaborate with Guangdong Hec Technology Holding Medicine's professional R&D team to drive the project's development globally."