Arrival Kai Pharmaceutical: Enters into exclusive licensing agreement with Qilu Pharmaceutical, to receive a maximum of 2.045 billion yuan in upfront and milestone payments.

In the announcement made by Kai Pharmaceuticals this morning on the Hong Kong Stock Exchange, on November 12, 2025, the group has entered into an exclusive licensing agreement with Qilu Pharmaceutical Co., Ltd. Under the terms and conditions of the licensing agreement, Qilu Pharmaceutical has been granted exclusive license to research, develop, and commercialize LAE002 in China. The group will be responsible for completing Phase III clinical trials for HR+/HER2- breast cancer. In return, until the first indication of approval for a new drug application in China, the group has the right to receive a maximum non-refundable upfront payment and clinical development milestone payment totaling up to RMB 5.3 billion. According to the licensing agreement, the group has the right to receive a maximum total upfront payment and milestone payments of RMB 20.45 billion. The group also has the right to receive gradient sales sharing based on future net sales of LAE002 in the licensed territory, with sharing rates ranging from over ten percentage points to over twenty percentage points.