KEYMED BIO-B (02162) enters into an exclusive out-licensing agreement with Timberlyne Therapeutics, Inc.

KEYMED BIO-B (02162) announces that on January 9, 2025, Canoya Biopharmaceutical Technology (Chengdu) Co., Ltd. (Chengdu Canoya, a wholly owned subsidiary of the group) has entered into an exclusive out-license agreement with Timberlyne Therapeutics, Inc. (the target company). The license agreement grants the target company exclusive rights to develop, manufacture, and commercialize CM313 globally (excluding mainland China, Hong Kong, Macau, and Taiwan) (licensed territories). CM313 is a humanized monoclonal antibody targeting CD38 developed by the company. Under the terms and conditions of the license agreement, the target company is granted exclusive rights to develop, manufacture, and commercialize CM313 in the licensed territories. In return, the group will receive a $30 million upfront payment and near-term payments, as well as equity in the target company, becoming its largest shareholder. Additionally, the group may receive up to $338 million in additional payments upon achieving certain sales and development milestones. The group also has the right to receive tiered royalties on net sales from the target company. The group is responsible for providing assistance to facilitate technology and knowledge transfer. Unless otherwise agreed, the target company will be responsible for all costs associated with development activities related to CM313 in the licensed territories. As part of the license agreement, the target company and the group will enter into a clinical supply agreement, with the target company purchasing clinical supplies of CM313 from the group. The target company is a limited company registered in Delaware, USA in June 2024. Concurrent with the license agreement, the target company has signed a financing agreement for $180 million, which will be completed subject to terms and conditions. After the transaction, the group will become the largest shareholder of the target company, holding 25.79% of its shares. The other major shareholders of the target company are Bain Capital and Venrock Healthcare Capital, both institutional investors independent of the company and its affiliates. Under the agreement, the group has the right to appoint a representative to join the target company's board of directors. CM313 is a humanized monoclonal antibody targeting CD38 that can induce antibody-dependent cell-mediated cytotoxicity (ADCC), complement-dependent cytotoxicity (CDC), antibody-dependent cellular phagocytosis (ADCP), and cause target cell apoptosis under Fc crosslinking conditions. CM313 has been studied in multiple disease areas, including immune thrombocytopenia, systemic lupus erythematosus, and relapsed or refractory multiple myeloma. In these clinical trials, CM313 has demonstrated best-in-class properties, demonstrating its transformative potential in the field of autoimmune diseases. The board of directors believes that entering into the license agreement is in the overall best interests of the company and its shareholders. The company will also seize this opportunity to further strengthen its global collaboration network and maximize the scientific and commercial value of its technology platform through its innovative partnership model.