JUNSHI BIO (688180.SH) signs a licensing agreement involving two dual-target fusion proteins for the treatment of malignant tumors.

JUNSHI BIO (688180.SH) announced that the company recently signed a "License Agreement" with the licensor. The licensor grants the company exclusive license rights and sub-license rights to develop, manufacture, use, import, export, sell, and commercialize two dual-target fusion proteins in the Greater China region. At the same time, the company and the licensor will each have a 50% stake in the ownership rights to develop, manufacture, use, import, export, sell, and commercialize one of the licensed products globally. The announcement indicated that the subject of this transaction is two dual-target fusion proteins (i.e. licensed product 1 and licensed product 2), mainly used for the treatment of malignant tumors. Currently, licensed product 1 is in the overseas Phase I clinical trial stage, and the company has submitted an application to the National Medical Products Administration for the Phase I clinical trial of licensed product 1 in China. Licensed product 2 is in the preclinical research stage. It is reported that after signing the License Agreement, the company will pay an initial payment of 1.5 million US dollars to the licensor. The company will pay a cumulative milestone payment not exceeding RMB 740 million based on the R&D progress and sales of the licensed products. The company will also pay the licensor a sales commission in the low single-digit percentage of the annual net sales of one of the licensed products in the Greater China region based on its sales performance. In addition, if the licensor grants rights to a third party based on the licensor's intellectual property rights or sub-license rights obtained from the company, for the development, commercialization, manufacturing, use, sale, import, or export of the licensed products outside the Greater China region, the licensor may pay the company up to 20% of the sub-license income or 200 million US dollars (whichever is lower).