Author : adminDate : 2020-09-07 15:22

HLB secures Global Rights of Rivoceranib and becomes a Royalty-receiving Company

HLB announced on the 7th that it has officially signed a patent transfer agreement with the Advenchen Laboratories (Advenchen), which holds the global patent rights of Rivoceranib. With the deal, HLB will complete the acquisition of global patents, including China, and will then receive royalties for the commercialization of Rivoceranib.

When comparing the Binding Term Sheet signed on February 27th, the contract amount and the subject of the contract were partially changed in consideration of convenience such as tax relations between the parties.

The final contract amount was $42 million, down $8 million, but changed to the condition that Advenchen will receive a royalty for this year. In other words, instead of reducing the number of rights transferred, HLB changed the royalty fee in China, which was scheduled to be received from this year based on last year's sales, to receive from “next year based on this year's sales."

In addition, Advenchen Nanjing and SFFT were added to the Parties to the Agreement. The deal is said to have been signed as global rights, including China, belong to a Chinese corporation owned by G Paul Chen, CEO of Advenchen and original developer of Rivoceranib.

The final deal closing is about 90 days after all global patents are transferred to HLB.

Under the main contract, Advenchen Nanjing and SFFT will receive only $15 million in cash out of the total contract amount, while the remaining $27 million will be re-participated in the HLB paid-in capital increase. The new shares will be protected for one year.

"Mr. Chen is more confident of the high potential and future value of Rivoceranib than anyone else," an HLB official said. "He expressed his intention to participate in the evidence to share the birth process of a new global blockbuster-class drug."

Under the main contract, HLB will receive royalties for Hengrui Medicine's sales in China to Rivoceranib as well as for its global sales of Elevar Therapeutics, which will ensure long-term and stable operating profit. In particular, Rivoceranib has been approved as a liver cancer treatment since it was marketed in China in 2014 as a stomach cancer treatment (product name Aitan) and has been rapidly expanding its adaptability, including the approval of phase 3 of the clinical trial of combination therapy for non-small cell lung cancer, ovarian cancer, and breast cancer.  

HLB is currently preparing Rivoceranib's NDA for late-stage stomach cancer and is also conducting global clinical trials for Adenoid Cystic Carcinoma (ACC), liver cancer, stomach cancer, colon cancer, and Sarcoma.

Meanwhile, at the ESMO Virtual Congress 2020, which will be held from September 19th to 21st, 21 different papers on Rivoceranib will be published, including the clinical trial results of phase 3 thyroid cancer and lung cancer.