Clarification on the news article by China Times

Clarification on the news article by Commercial Times
June 29, 2017
OBI Received a Civil Complaint from Taiwan Shilin District Court
July 21, 2017
  1. Date of occurrence: July 12, 2017
  2. Company name: OBI Pharma, Inc.
  3. Relationship to the Company (please enter ”head office” or ”affiliated company”): N/A
  4. Reciprocal shareholding ratios: N/A
  5. Name of mass media: China Times Page B4; Economic Daily News Page C6
  6. Content reported: China times reported that “OBI stepped the foot into the anti-cancer drug by obtaining an exclusive licensing deal from Abzena, a UK based life sciences group. Based on the contract terms, OBI will pay a small initial up-front payment, to gain a worldwide exclusive license to use the ThioBridge technology to research, develop and commercialize ADCs targeting the Globo series. OBI will pay up a total to £128 million upon achievement of certain development, regulatory and commercialization. In addition, Abzena will also receive royalties on sales of any approved ADC products that incorporate the ThioBridge™ technology.” Economic Daily news reported that “the technology transfer between OBI and Abzena[…]. Based on the contract terms, OBI will pay a small initial up-front payment, to gain a worldwide exclusive license to use the ThioBridge technology to research, develop and commercialize ADCs targeting the Globo series. OBI will pay up a total to £128 million upon achievement of certain development, regulatory and commercialization. In addition, Abzena will also receive royalties on sales of any approved ADC products that incorporate the ThioBridge™ technology.”
  7. Cause of occurrence: None
  8. Countermeasures: On the 11th, OBI signed OBI Pharma (‘OBI’, TPEx: 4174) has signed a licensing agreement and a master services and clinical supply agreement with Abzena plc (AIM: ABZA, ‘Abzena’ or the ‘Group), a UK-based life sciences group that provides biopharmaceutical services and technologies. The licensing agreement introduces ThioBridge ™, a novel linker technology for Antibody Drug Conjugate. OBI will utilize Abzena’s novel site-specific linker technology to develop Antibody Drug Conjugate (ADC), a promising class of drugs. ThioBridge™ is a technology platform that links antibodies and other proteins to drugs. It is unique in its ability to maintain the stability of the antibody and a consistent Drug-to-Antibody Ratio (DAR), which provides a more uniform product. OBI-999 is an ADC that recognizes the Globo H antigen. By releasing the cytotoxic payload to the targeted cancer cells with high Globo H expression, it triggers cell apoptosis. We have observed encouraging results based on the preclinical data. OBI is actively preparing for Chemistry Manufacturing Control (CMC) and toxicology study design in preparation for Phase I IND application. In addition to Globo H, other tumor associated carbohydrate antigens include SSEA3 and SSEA4, which are collectively referred to as the Globo series antigen. They have been observed in more than 14 types of cancers, including breast cancer, lung cancer, gastric cancer, and colorectal cancer. The expression of Globo H antigen has not been observed in normal cells. Thus, the release of cytotoxic payload triggers cancer cell apoptosis while minimizing the drug’s toxicities to normal cells. In addition to OBI-999, OBI is also actively planning on the development of other Globo series ADCs. Concurrent with the signing of the licensing agreement, OBI Abzena and OBI have also entered into a Master Services and Clinical Supply Agreement, covering the scope of manufacturing process development and GMP manufacture of OBI-999 and other ADC products. Under the terms of this agreement, OBI will pay a small initial up-front payment, to gain a worldwide exclusive license to use the ThioBridge technology to research, develop and commercialize ADCs targeting the Globo series. OBI will pay up a total to £128 million upon achievement of certain development, regulatory and commercialization. In addition, Abzena will also receive royalties on sales of any approved ADC products that incorporate the ThioBridge™ technology.
  9. Any other matters that need to be specified: New drug development is a long journey associated with high cost. It is not a guaranteed success, which may increase the risk of investment. Investors shall make prudent judgments and investments.