Ascentage Pharma, a globally focused biopharmaceutical company engaged in developing novel therapies for cancers, chronic hepatitis B (CHB), and age-related diseases, and Innovent Biologics, today announced a multifaceted strategic collaboration. This collaboration includes the joint clinical development and commercialization of HQP1351(olverembatinib), a third-generation BCR-ABL inhibitor and a core drug candidate of Ascentage Pharma, in China; the collaborative clinical development of Ascentage Pharma's Bcl-2 inhibitor APG-2575(lisaftoclax) in combination with the anti-CD20 monoclonal antibody HALPRYZA® (rituximab biosimilar injection) co-developed by Innovent and Eli Lilly and Company, and Innovent's anti-CD47 monoclonal antibody letaplimab (IBI188). Furthermore, Innovent will subscribe to Ascentage Pharma's common shares for a total consideration of US$50 million at HK$44.0 per share, and be granted stock warrants that will allow it to acquire additional Ascentage Pharma's common shares for a total consideration of US$50 million at a subscription price of HK$57.2 per share. This agreement marks a large-scale multifaceted collaboration between two leading Chinese innovative biopharmaceutical companies.
Key components of the agreement:
The joint clinical development and commercialization of HQP1351 in China
Upon signing the agreement, Ascentage Pharma will receive an upfront payment of US$30 million from Innovent.
Joint clinical development and commercialization: According to the agreement, Innovent and Ascentage Pharma will be jointly responsible for the subsequent R&D of HQP1351 in China. Upon being granted a New Drug Application (NDA) approval, the two companies will jointly commercialize HQP1351 in China and equally split the profit generated by the joint commercialization.
Milestone payments: upon achieving certain pre-specified milestones in development, registration and annual sales performance of HQP-1351, Ascentage Pharma is eligible to receive up to US$115 million in milestone payments.
The joint clinical development of APG-2575 in China
The two companies agree to jointly explore the development of APG-2575 with the anti-CD20 monoclonal antibody HALPRYZA® (rituximab biosimilar injection) and the anti-CD47 monoclonal antibody letaplimab (IBI188) in certain indications.
Investment in equity and stock warrants
Innovent agrees to purchase US$50 million worth of Ascentage Pharma's common stock at HK$44.0 per share.
Ascentage Pharma will grant Innovent stock warrants that will allow it to acquire additional Ascentage Pharma's common shares for a total consideration of US$50 million. These warrants will be issued at a subscription price of HK$57.2 per share, exercisable within two years upon and after the approval of shareholder meeting of Ascentage Pharma. Ascentage Pharma retains the right to redeem the warrants if Innovent decides not to exercise the warrants within six months of the stock price remaining above HK$57.2 per share.
Dr. Dajun Yang, Chairman & CEO of Ascentage Pharma, stated: "Innovent is a leading biopharmaceutical company with outstanding integrated capabilities in the R&D and commercialization of innovative therapies. It is our great pleasure to enter into this multifaceted and comprehensive landmark partnership with Innovent. HQP1351 is a novel therapeutic with practice-changing potentials. We hope that by leveraging the two companies' expertise in clinical development, we will be able to quickly expand the indications of HQP1351. Another one of our assets, APG-2575, is the world's second, and China's first Bcl-2 inhibitor that has demonstrated compelling clinical activity with best-in-class potential. As a small-molecule drug, APG-2575's potential utility in combination with Innovent's anti-CD20 monoclonal antibody and anti-CD47 monoclonal antibody is very promising. The equity investment in Ascentage Pharma is a major strategic investment signifying Innovent's strong recognition of our R&D capabilities and our growth potential, and generates powerful tailwind to our global clin...
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