MOLOGEN AG and Chinese iPharma Ltd. signed binding term sheet for a collaboration regarding the development, manufacture and commercialization of lefitolimod in China and a potential co-development

The Executive Board of biopharmaceutical company MOLOGEN AG (ISIN DE0006637200, SIN 663720) today signed a binding term sheet that defines the framework for the collaboration between MOLOGEN and iPharma. iPharma is a China-based drug development company and a joint venture between the Chinese investor I-Bridge Capital and BiolineRx Ltd., a company based in Israel and publicly-listed in Israel and on the US stock market NASDAQ. iPharma is focusing on innovative approaches and assets in immunotherapy via in-licensing those programs and further developing the assets for the Chinese market and globally.

The collaboration between the parties shall be defined in a final documentation that is to be finalized by the end of the year and which will be reflecting and incorporating all of the binding terms of the term sheet. It is envisaged that the final documentation shall consist of two parts: first, a license agreement including sublicense rights under which MOLOGEN grants iPharma an exclusive license for the development, manufacturing and commercialization for MOLOGEN`s lead compound lefitolimod in oncology in the following territory: China including Hong Kong and Macao, Taiwan and Singapore. Second, a co-development agreement under which the two parties plan to jointly develop lefitolimod in one or more mutually agreed indications in oncology in the territory and on a global level, with a development plan to be pre-agreed and depending on each company´s ability to secure sufficient funding.

Subject to the signing of the final documentation, iPharma commits (i) to make an upfront payment of EUR 3 million under the licence agreement and (ii) to subscribe for an equity investment in MOLOGEN amounting to further EUR 2 million in the context of a still to be defined capital measure of MOLOGEN within a period of 12 months following the execution of the license agreement. Further milestones are defined as development milestones which are due upon reaching predefined development steps and the market approval of the compound and commercial milestones which are due upon reaching certain sales thresholds. The total package can amount to about € 100 million and would be paid over several years after having reached the milestones. In addition MOLOGEN would receive low double digit royalties on sales.

In addition all costs relating to development, registration, marketing and commercialization of lefitolimod in the agreed territory under the final documentation would be covered by iPharma.

With the execution of the final contract MOLOGEN would achieve one of the main milestones in implementing its strategy: a first licensing deal for its lead compound lefitolimod. Pursuant to the final contract MOLOGEN would receive upfront payments, cash inflows for milestones achieved and it would secure the development and commercialization of its lead product lefitolimod in the defined territory. 

- End of the ad-hoc notification -


Claudia Nickolaus

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