On November 15, Genscript Bio (01548.HK) announced that on November 12, 2024, its non-wholly owned subsidiary Ningbo Pongbo Biotechnology Co., Ltd. ("Ningbo Pongbo") entered into a restated and amended license agreement with Li Xin Medical Technology Co., Ltd. ("Li Xin"). Under the agreement, Ningbo Pongbo agreed to grant Li Xin an exclusive global transferable license, including the right to sub-license, to develop, produce, commercialize, and otherwise use a number of products containing licensed molecules, including those targeting certain disclosed anti-PD-1 (cell program death factor) monoclonal antibodies ("Licensed Patents") and related proprietary technologies for global use. On the same day, LaNova issued a confirmation letter to Pongbo Ningbo regarding the restated and amended agreement (which includes) payment arrangements, stating that Ningbo Pongbo and Zhenjiang Pongbo Biotechnology Co., Ltd. (a non-wholly owned subsidiary of the company, referred to collectively as "Pongbo") will be entitled to payments from LaNova under the restated and amended agreement.
According to the restated and amended agreement and confirmation letter, Li Xin shall pay Pongbo certain prepayments and milestone payments (depending on the achievement of relevant milestones) upon the occurrence of various milestone events related to the development and regulatory approval of the licensed products for the first time. Pongbo also has the right to receive a certain percentage of actual additional license income received by Li Xin from any sub-licensing of the license. Specifically, regarding the first developed authorized product, Pongbo will be entitled to receive (i) 40% of the prepayments and 25% of other milestone payments related to any additional licensing after approval of the Investigational New Drug (IND) application but before completion of Phase I clinical trials of the licensed product, and (ii) 25% of the royalties received by Li Xin (revenue sharing).
On November 14, 2024, the company noted that Merck & Co., Inc. (NYSE: MRK, referred to as Merck outside the United States and Canada) released a press release stating that Merck and Li Xin have entered into an exclusive global license to develop, produce, and commercialize LM-299, a Li Xin investigational PD-1/VEGF bispecific antibody. Under the license, Li Xin is entitled to receive a prepayment of 0.588 billion USD and milestone payments of up to 2.7 billion USD. According to the company, LM-299 includes an anti-PD-1 monoclonal antibody that LaNova licensed from Pongbo. According to the press release, (a) completion of the proposed transaction is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions, (b) the transaction is expected to be completed in the fourth quarter of 2024.
