GENSCRIPT BIO(01548): GenScript Biotech Corporation reached a licensing agreement with Nanjing Pengbo and Lixin Pharmaceuticals.

GENSCRIPT BIO (01548) announced that on November 12, 2024, its non-wholly owned subsidiary, Nanjing Prosper Biotech Co., Ltd. (Nanjing Prosper), entered into a license agreement with Lixin Pharmaceutical Technology Co., Ltd. (a company focused on discovering and developing innovative biopharmaceuticals to change cancer treatment) (Lixin) after restatement and revision. Under the agreement, Nanjing Prosper agreed to grant Lixin an exclusive global transferable license, with the right to sublicense, to develop, manufacture, commercialize, and otherwise use a number of disclosed anti PD-1 (programmed cell death protein) single-domain antibodies and related proprietary technologies, including certain molecules and products containing licensed molecules for all global applications. On the same day, LaNova sent a confirmation letter to Nanjing Prosper regarding the payment arrangements under the restated and revised agreement, wherein Nanjing Prosper and Zhenjiang Prosper Biotech Co., Ltd. (a non-wholly owned subsidiary of the company, collectively referred to as "Prosper") would be entitled to receive payments from LaNova under the restated and revised agreement. According to the restated and revised agreement and confirmation letter, Lixin is obligated to make certain upfront and milestone payments to Prosper upon the occurrence of various milestone events related to the development and regulatory approval of the licensed products for the first time. Prosper also has the right to receive a certain percentage of the actual sublicense revenue received from Lixin concerning any further sublicenses related to the license. Specifically, Prosper will be entitled to receive (i) 40% of the upfront payment and 25% of other milestone payments related to any further sublicenses until the completion of phase I clinical trials of the licensed product following the approval of a new drug research application (IND), and (ii) 25% of the royalty fee (revenue sharing) received by Lixin. On November 14, 2024 (after trading hours), the company noted that Merck & Co., Inc. (NYSE: MRK, known as Merck outside the US and Canada) issued a press release stating that Merck and Lixin had entered into an exclusive global license to develop, manufacture, and commercialize LM-299, a Lixin investigational PD-1/VEGF bispecific antibody. Under the license, Lixin has the right to receive upfront payments of $5.88 billion and milestone payments of up to $27 billion. The company understands that LM-299 includes an anti-PD-1 single-domain antibody licensed from Prosper by LaNova. According to the press release, (a) completion of the proposed transaction is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions, (b) the transaction is expected to be completed in the fourth quarter of 2024.