OBI announces the termination of license agreement with Odeon for the rights of OBI-999 and OBI-833 in China, Hong Kong and Macau

1.Date of termination of the contract or commitment:2024/05/10
2.Content of the contract or commitment:
On 2022/2/22, OBI Pharma entered into a license agreement with Odeon
Therapeutics (Hong Kong) Limited (hereinafter referred to as “ Odeon HK”)
for the exclusive rights of OBI-999 and OBI-833 in China, Hong Kong and
Macau, including the first right of negotiation for OBI-888 in China with
a period of two years.
Under the terms of the agreement, OBI is eligible to receive upfront,
milestones, and royalties on net sales. In lieu of monetary payment, OBI
has received the shares issued from Odeon Therapeutics (Cayman) Limited
(hereinafter referred to as “Odeon KY”, the parent company who owned a
100% equity interest in Odeon HK), which is equivalent to US$ 12 million.
Odeon KY has hereinafter become OBI’s subsidiary with 77.42% voting right.
3.Counterparty of the contract or commitment: Odeon KY and Odeon HK
4.Relationship with the Company: The Company’s subsidiaries
5.Reason for termination:
OBI has rebuilt its pipeline as a measure to the recent development of
cancer therapy. Take OBI-888 as example, as the antibody drug yield rate
was reduced during scale-up production, the manufacturing costs increase
dramatically for commercial viability. Therefore, OBI resolved to
discontinue its Phase II enrollment in 2022. Also, considering that
OBI-999 has not shown its expected therapeutic potential for the enrolled
patients in its clinical trial during past two years, OBI determined to
stop further enrollment of patients in this Phase II trial and will focus
existing resources on other ADC drugs in our pipeline.
In summary, after thorough discussion with Odeon HK and Odeon KY, OBI Board
resolved to terminate the license agreement with Odeon HK for the rights of
OBI-999 and OBI-833 in China, Hong Kong and Macau. OBI will reconsider the
partnership with Odeon based on the development of new products. Meanwhile,
OBI will return the shares of Odeon KY and will lose control over Odeon KY
and its subsidiaries.
6.Effect on the Company’s finances or business:
No significant impact on the Company’s finances or business.
7.Any other matters that need to be specified(the information
disclosure also meets the requirements of Article 7, subparagraph 8
of the Securities and Exchange Act Enforcement Rules, which brings
forth a significant impact on shareholders rights or the price of
the securities on public companies.):
Please refer to 5. Reason for termination.