- Date of occurrence of the event: Jul 29, 2019
- Counterparty to the contract or commitment: Tasly Biopharmaceuticals Co. Ltd
- Relationship to the Company: None
- Starting and ending dates (or rescission date) of the contract or commitment: Jul 26, 2019
- Major content (not applicable where rescinded): Subsidiary of 67 % stock owned OBI Pharma Inc. (abbrev. OBI below), AP Biosciences (abbrev. AP Bio below), and Tasly Biopharmaceuticals Co. Ltd (abbrev. Tasly below) signed cooperative development and authorized agreement on new immunology therapeutic antibody drug. Tasly will acquire exclusive clinical development, manufacturing and sales of new antibody drug of Greater China (including China, Hong Kong, and Macao, not including Taiwan). Based on the agreement, Tasly will pay AP Bio an upfront payment of USD$4,500,000, milestone payments when achieving preset goals and royalties based on percentage of net sales of product. Details of authorization are listed below:
(1) Developed product of antibody:
A. AP201: AP Bio developed bispecific antibody, PD-L1/OX-40. T-cell activation inhibitor, PD-L1, and immune checkpoint inhibitor, OX40, direct activated T-cells to kill tumor cells. Currently, the product is finished initial evaluation of in vitro and in vivo treatment and optimization and development of over-the-counter (OTC). PCT patent application has been done and will enter national reviews.
B. AP505: AP Bio developed bispecific antibody, PD-L1/VEGF. This type of antibody can simultaneously cut-off PD-1/PD-L1 and angiogenesis, two different pathways, for “Immunotherapy” and “Inhibition of Angiogenesis”. Currently, the product is finished initial evaluation of in vitro and in vivo treatment and optimization of OTC. PCT patent application has been done and will enter national reviews.
C. AP116: AP Bio developed monoclonal antibody, through CD137 to activate immune system. It can replace CD137L (CD137 receptor) to activate CD137 pathway on T-cells, NK-cells and DC-cells to increase autoimmune on attacking cancer cells to acheive treatment effective. Currently, the product is finished initial research of in vitro treatment.
(2) New cooperative antibody product: Tasly expected to apply platform of AP Bio for cooperative development of no more than 8 products.
- Restrictive covenants (not applicable where rescinded): According to agreement, the two parties have obligation to keep confidential about specific milestone payments and royalties. Please refer to MOPS of monthly revenue reports and financial reports for information related to future revenue contribution based on this agreement.
- Effect on company finances and business (not applicable where rescinded): This cooperation benefits company in both financially and operationally.
- Concrete purpose/objective (not applicable where rescinded): Cooperative development and regional authorization of new immunology therapeutic antibody drug.
- Any other matters that need to be specified:
(1) Tasly Biopharmaceuticals Co. Ltd is subsidiary of Tasly Pharma (A share market of Shanghai: 600535, https://gf.tasly.com/), a high-technology biopharmaceutical company with research, manufacturing and sales of biomedicine.
(2) New drug development is a long process associated with high cost. It is not a guaranteed success, which may increase the risk of investment. Investors shall make prudent judgments and investments.