Kelun Pharmaceutical (002422.SZ): Kelun Botai's Project A Granted Exclusive Commercialization License to MSD Outside China

Intelligent Finance APP News, Kelun Pharmaceutical (002422.SZ) announced that its controlling subsidiary, Kelun-Biotech, signed an amendment to the licensing agreement with MSD on May 13. Kelun-Biotech granted MSD the exclusive right to commercially develop its proprietary biological macromolecule oncology project A outside of China (China includes mainland China, Hong Kong, Macao, and Taiwan).

The counterparty to this agreement is MSD, a global biopharmaceutical company focused on the research, development, and commercialization of innovative drugs. According to the commercial terms, MSD will pay Kelun-Biotech an upfront payment, various milestone payments, and royalties based on corresponding net sales at different stages of commercial development. Kelun-Biotech received a one-time, non-refundable payment of $17 million upon the effectiveness of the licensing agreement, and another one-time, non-refundable payment of $30 million after signing the amendment to this agreement. The total milestone payments may reach up to $1.363 billion, along with royalties based on the agreed percentage of net sales between both parties.

The signing of this amendment to the licensing agreement will help accelerate the global development of Project A. If approved and successfully launched, it may provide a new treatment option for cancer patients worldwide and further enhance the internationalization of the company's innovative projects.