1.Date of occurrence of the event:2022/02/22
2.Counterparty to the contract or commitment:
Odeon Therapeutics (Hong Kong) Limited (hereinafter referred to as “ Odeon”)
3.Relationship with the Company: None
4.Starting and ending dates (or rescission date) of the contract or commitment: 2022/02/22
5.Major content (not applicable where rescinded):
(1)OBI Pharma enters license agreement with Odeon Therapeutics for the rights of OBI-999 and OBI-833 in China, Hong Kong and Macau. Under the terms of the agreement, OBI will grant Odeon exclusive rights to develop, register and commercialize OBI-999 and OBI-833 for human cancer therapy in China, Hong Kong and Macau. Right of negotiation for OBI-888 in China with a period of two years is also included in the license agreement and further announcement will be made once OBI enters the agreement.
(2)Odeon will issue to OBI fully paid equity equivalent to US$ 12 million upon signing. OBI is eligible for development and commercialization milestones totaling up to US$ 188 million. The company is also eligible to receive tiered double-digit royalties on net sales. Odeon will also be responsible for all development costs and all subsequent regulatory and commercialization costs of OBI-999 and OBI-833 in China, Hong Kong and Macau. Milestone and royalties will be disclosed in financial reports upon achievement of other licensing terms pursuant to the regulations.
(3)The licensing deal was resolved by the Company’s Board of Directors and approved by MOEAIC. Please refer to the Company’s material information announcement on 2020/9/28 and 2021/11/11.
6.Restrictive covenants (not applicable where rescinded): Pursuant to the license agreement.
7.Commitment (not applicable where rescinded): Pursuant to the license agreement.
8.Any other important agreement (not applicable where rescinded): Pursuant to the license agreement.
9.Effect on company finances and business: As the market of cancer therapy in China has a great potential in growth, OBI hopes to combine resources of two companies through execution of the license agreement, collectively press ahead the research progress of OBI-833 and OBI-999, and share the potential commercial benefits after the product is launched, which will have positive effect on OBI’s finance in the future.
10.Concrete purpose/objective: To leverage external resources to press ahead OBI-833 and OBI-999.
11.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 investment decisions.