Gan\u0026Lee Pharmaceuticals (603087.SH) has announced the signing of an exclusive licensing agreement with Menarini. The deal grants Menarini the rights to pursue marketing registration and commercialization of the company's independently developed Bofang Liraglutide project, targeting overweight or obesity indications, within a defined territory.
Under the agreement, Gan\u0026Lee Pharmaceuticals will license the exclusive rights for development and commercialization of Bofang Liraglutide to Menarini across 39 European countries and regions. This includes all 27 member states of the European Union, as well as the United Kingdom, Switzerland, Norway, Iceland, Liechtenstein, and the Balkan region.
The contract stipulates that upon signing, Menarini will pay a non-refundable upfront payment of €62 million. As the licensed product advances through research, development, and commercialization for obesity indications, and upon reaching key milestones agreed upon by both parties, Menarini will make additional payments to Gan\u0026Lee Pharmaceuticals. These include development milestone payments, marketing milestone payments, and sales milestone payments, cumulatively reaching up to €664 million.
Following the commercial launch of the product within the licensed territory, Menarini will pay tiered royalties to Gan\u0026Lee Pharmaceuticals based on annual net sales, at a rate of up to a double-digit percentage.
Bofang Liraglutide is positioned as a potential first-in-class GLP-1RA biweekly formulation globally. If the agreement is successfully executed, it is expected to further diversify treatment options for obese patients worldwide and enhance the accessibility of high-quality medications.
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