Kangstem Biotech is further strengthening its research and development (R&D) capabilities by introducing skin regeneration-related patent technology from the Seoul National University Industry Foundation.

On the 15th, Kangstem Biotech announced through a disclosure on major management matters related to investment decisions that it had signed a technology introduction contract with the Seoul National University Industry Foundation. The stated contract date is July 15, 2026.

Transfer of SNU's '3D Skin Assembloid' Patent Technology This contract involves the transfer of technology for a 'Method for Manufacturing an Immune-Vascular Integrated 3D Skin Assembloid,' which was developed, held, and patent-applied for by Seoul National University. The contract period runs from the contract execution date until the latest expiration date of the relevant patents.

Contract Amount Exceeds 10% of Recent Revenue... Kept Confidential The contract amount was not disclosed at the request of the counterparty. However, the company explained that the contract amount corresponds to at least 10% of its consolidated revenue (3.5724 billion won) for the most recent fiscal year.

• Payment will be made in the form of an upfront payment and milestone payments, with milestones paid upon fulfillment of conditions specified in the contract. The specific milestone payment conditions are as follows:
• Within 60 days after the commencement of commercialization
• Within 60 days after the first patent registration in any one of South Korea, the United States, Europe, Japan, or China

Additionally, if the company licenses out the technology to a third party, it agreed to pay a certain percentage of the amount exceeding the royalties paid to Seoul National University as a sub-royalty.

Conditional Contract and Termination Conditions The company stated that this is a conditional contract, and expense recognition may vary depending on the success of clinical trials and product approval. The contract may be terminated if regulatory authorities halt research and development or if product approval fails.

Furthermore, even if the contract is terminated, the counterparty will not return the royalties already received, and the contract may be terminated if either party breaches its contractual obligations.