Board of directors resolved to license DNA sequence of OBI-888 to AP Bioscience Inc. for bispecific antibody development

  1. Date of occurrence of the event: Sep 28, 2020
  2. Company name: OBI Pharma Inc
  3. Relationship to the Company (please enter “head office” or “subsidiaries”): head office
  4. Reciprocal shareholding ratios: Not applicable
  5. Cause of occurrence:
    1. Bispecific antibody drug is one of the mainstreams in new generation antibody drug. Currently, only a few bispecific antibody drugs, none of them are Globo H targeted, are successfully launched. To be competitive in global level, OBI invests into development at early stage. OBI will license the DNA sequence of the monoclonal antibody targeting Globo H, OBI-888, to AP Bioscience Inc. (hereinafter refer to as ‘AP Bio’) for development of potential bispecific cancer therapy. Licensing item limits to OBI-888+CD3/CD137.
    2. Bispecific antibody contains two different antigen binding sites. One is targeting antigen on cancer cells (eg. Globo H), and the other is targeting effective cells of immune response (eg. CD3 on T cells). Bispecific antibody reduces the distance between cancer cells and T cells to achieve therapeutic effect by activating cytotoxicity of T cells to kill cancer cells.
    3. AP Bio employs the specificity of the antibody drug for platform development. AP bio can develop a potential cancer therapeutic bispecific antibody drug by optimizing an effective antibody from all human antibody library targeting CD3/CD137, combined with OBI Globo H targeting monoclonal antibody drug, OBI-888.
    4. Chairman or appointed person will proceed the contract negotiation and signing processes complied with the licensing conditions resolved by board of directors. A formal announcement will be made after contract signing. Licensing condition includes, contract fee, milestone payments for research and retails, and royalty calculated by % of net sales.
  6. Countermeasures: None
  7. Any other matters that need to be specified: New drug development is a long process associated with high costs. It is not a guaranteed success, which may increase the risk of investment. Investors shall make prudent judgments and investments.