Kelun Pharmaceutical's Subsidiary Licenses Seven Preclinical ADC Candidates to Merck, with Potential Milestone Payments Up to $9.3 Billion

Kelun Pharmaceutical announced on December 22 that its controlling subsidiary, Sichuan Kelun Biotech Co., Ltd. ("Kelun Biotech"), has granted Merck & Co., Inc. (MSD) an exclusive global license or an option for an exclusive license for seven different preclinical ADC candidate drug projects in its pipeline. This license allows MSD to research, develop, manufacture, and commercialize these projects globally or outside mainland China, Hong Kong, and Macao. Kelun Biotech retains the rights to research, develop, manufacture, and commercialize certain projects with granted exclusive licenses and projects eligible for retaining the exclusive license option within mainland China, Hong Kong, and Macao. If Kelun Biotech decides to grant MSD the global rights to all projects under the exclusive license option, it is expected to receive milestone payments from MSD totaling up to $9.3 billion.