Frontier Biotechnologies (688221.SH) signs licensing agreement with GlaxoSmithKline

Frontier Biotech (688221.SH) announced that the company has reached an exclusive licensing agreement with global biopharmaceutical company GlaxoSmithKline (GSK). According to the agreement, GSK will obtain exclusive rights to develop, produce, and commercialize two small nucleic acid (siRNA) pipeline products globally. One candidate drug has entered the investigational new drug (IND) application stage, while the other is a preclinical candidate drug. Under the agreement, the company will receive an upfront payment of $40 million and a near-term milestone payment of $13 million. The company may also receive up to $950 million in milestone payments based on successful development, regulatory approval, and commercialization milestones for the two projects, as well as tiered royalties based on global net sales of the two products. As per the agreement, the company will be responsible for the early-stage development of both products, including advancing one product into Phase I clinical trials in China and supporting IND-enabling studies for the other product. GSK will be responsible for all global clinical development, regulatory submissions, and commercialization activities for the two products. The authorized collaboration with GSK will bring upfront and milestone payments to the company, helping to improve cash flow, optimize financial structure, and provide solid financial support for core pipeline research and development investment, as well as technological platform optimization and upgrade. The tiered royalties based on net sales in the agreement will allow the company to continuously share in the potential commercial success of the collaborative products globally, creating a potential long-term source of income and generating value for all shareholders. The agreement with the leading global biopharmaceutical company GSK demonstrates that the company's technical strength in the field of small nucleic acid drug development and the platform's value are gaining international recognition. This collaboration will leverage GSK's resources and experience in global clinical development and commercialization to accelerate the international value conversion of the company's pipeline and lay a solid foundation for the future commercialization and global expansion of products.