Lixun Pharma's LM-299 Global Licensing Deal with Merck Progresses Smoothly; $300 Million Milestone Payment Imminent
Sino Biopharm
Pharmaceutical R&D Developer
MSD
Pharmaceutical R&D and Manufacturer
On July 30, Sino Biopharm (1177.HK) announced that its wholly-owned subsidiary, Lixin Pharmaceutical Technology (Shanghai) Co., Ltd., has made smooth progress in the out-licensing cooperation of LM-299/MK-2010 (PD-1/VEGF bispecific antibody) with MSD. Sino Biopharmaceutical Co., Ltd. will receive a $300 million technology transfer milestone payment in the near future.
On July 29, MSD disclosed during its Q2 earnings call that the technology transfer for LM-299 was completed in July, with a $300 million technology transfer milestone payment expected to be recognized in the third quarter. Additionally, during the Q&A session of the conference call, MSD responded to analysts' inquiries, stating that the LM-299 project is proceeding as planned and on schedule.
Recently, Sino Biopharm announced the completion of the 100% equity acquisition of Lixin Pharmaceutical Technology (Shanghai) Co., Ltd. at a valuation of approximately 1 billion US dollars. This move has been widely regarded as a milestone event where a leading Chinese pharmaceutical company merges with a top Biotech firm. LM-299 is one of Lixin’s key products. Known as a "dark horse" in innovative drugs, Lixin has built a world-leading antibody discovery and ADC technology platform. The full acquisition of Lixin by Sino Biopharm will significantly boost comprehensive innovation and international business development.
Regarding the Out-Licensing Collaboration of LM-299
LM-299 is a potential BIC PD-1/VEGF bispecific antibody currently undergoing Phase I/II clinical trials in China. Preclinical studies have shown that LM-299 exhibits excellent synergistic effects and safety.
In 2024, Lixin Pharmaceutical Technology (Shanghai) Co., Ltd. entered into a global exclusive licensing agreement with MSD for LM-299. According to the terms of the agreement, MSD will obtain the global exclusive license for the development, manufacturing, and commercialization of LM-299. Lixin Pharmaceutical Technology (Shanghai) Co., Ltd. will receive an upfront payment of $588 million and milestone payments of up to $2.7 billion.
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Forward-Looking Statements:
This press release contains certain forward-looking statements, including statements regarding the clinical development plans, anticipated clinical benefits and advantages, commercialization prospects, potential patient clinical benefits, and potential commercial opportunities related to [LM-299 etc.]. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "hopeful," "intend," "plan," "potential," "predict," "project," "should," "will," "aim," "would," and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements contain these identifying words. These forward-looking statements are predictions or expectations made by the company based on currently available data and information, and actual results may differ materially from these forward-looking statements due to uncertainties or risks related to policy, research and development, market conditions, regulatory factors, and other risks. Existing or potential investors are advised to carefully consider these possible risks and should not rely solely on the forward-looking statements contained in this press release, which speak only as of the date of this press release. Unless required by law, the company has no obligation to update or revise any forward-looking statements in this press release in light of new information, future events, or otherwise.
Source of Figures and Text:Announcement Released by Sino Biopharmaceutical Co., Ltd. on the Hong Kong Stock Exchange