SK Biopharm announced on the 22nd that it has signed a joint research and development partnership agreement with Chinese AI drug discovery company Insilico Medicine to discover new drug candidates in the field of central nervous system (CNS) neuroimmune diseases.

Under this agreement, the two companies plan to utilize Insilico Medicine's AI platform technology to discover drug candidates for three collaborative targets and jointly conduct research through the preclinical stage. SK Biopharm will retain ownership of the resulting candidates as well as exclusive global development and commercialization rights.

Contract Scale and Key Terms

• Contract date: June 22, 2026
• Contract period: Until the later of either the material patent expiration date or 10 years from the first commercial sale, by product and country
• Total contract value: Up to KRW 3.9487875 trillion (approximately USD 257.25 million)
• - Upfront payment: KRW 690.75 million (USD 4.5 million)
• - Milestone payments (research, development, approval, and sales achievements): Up to KRW 3.94188 trillion (USD 256.8 million)
• - Running royalties linked to net product sales: Paid separately

The company explained that the upfront payment is non-refundable, and milestone payments will be made upon the achievement of conditions agreed upon by both parties. The total contract value is equivalent to 559% of the company's 2025 consolidated revenue.

Conditional Contract, Risk Factors Exist

This contract is a conditional agreement, and expense recognition may vary depending on the success of clinical trials and product approval. The contract may be terminated in the event of research and development suspension by regulatory authorities or failure to obtain product approval.