Board of directors’ resolution on licensing of OBI-833, OBI-888 and OBI-999 in China (including Hong Kong and Macao)

  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. To implement research strategy on a local level in China, OBI has accelerated to expand the potential indication for cancer cure products in Chinese market, and centralized existing resources on executed clinical projects to spread the risk of research. To avoiding resource crowding out effect to affect the original research timeline, looking for partners who are familiar with new drug development environment and market in China for co-development is a need.
    2. The market of cancer therapy in China has a great potential in growth, and Delos Advisors Limited (hereinafter refer to as ‘Delos’) has a team with profound experience in new drug development environment and market in China; therefore, OBI will potentially cooperate with Delos. OBI will license out the Chinese Intellectual property rights (including Hong Kong and Macao) of Globo-H targeted cancer therapies, OBI-833 (Globo H-DT active immunotherapy), OBI-888 (Globo H passive immune monoclonal antibody), and OBI-999 (Globo H antibody drug conjugate), to new established company via Delos to proceed the clinical research and development.
    3. Chairman or appointed person will proceed the contract negotiation and signing processes according to the licensing conditions resolved by board of directors. A formal announcement will be made after agreement is signed. As planned, licensing agreement terms included, agreement fee, milestone payments for research and retails, and royalty calculated by % of net sales. Agreement fee and partial research milestone payment will pay with shares of the new established company.
    4. Delos is a venture capital based in Hong Kong, focusing global biomedical investment. Website of the company: OBI chairman, Michael Chang, and director, Frank Chen, will be partners of Delos.
  1. Countermeasures: None
  2. 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.