April Bio announced in a regulatory filing on the 21st that it has signed a license-in agreement with Qurigen for a drug candidate for treating metabolic diseases based on a 'dual-target siRNA platform.'

[Contract Overview and Financial Terms] The specific contract amount, upfront payment, and milestone payment scale for this agreement have been kept confidential at the request of the contracting party. However, April Bio stated that the contract amount equals or exceeds 10% of its revenue from the most recent fiscal year (2.172 billion KRW). The specific contract amount and target substance will be withheld from disclosure until October 31, 2046, to protect trade secrets.

Financial performance follows a milestone payment method, where payments are made upon the achievement of阶段性 development goals. In particular, additional milestone payments will be made upon obtaining the first commercial approval in the first and second countries. Additionally, if April Bio re-licenses out (License-out) the technology to a third party, the two companies agreed to distribute revenue according to an agreed-upon ratio.

[Contract Period and Conditions] The contract execution date is July 21, 2026. The contract period is set until the latest of the following three conditions: • The expiration date of the final valid patent claim covering the target product in the respective country • The expiration date of the regulatory exclusivity period • The date marking 12 years from the first commercial sale of the target product in the respective country

This agreement is a conditional contract, and expense recognition may vary depending on the success of clinical trials and product approvals. The contract may be terminated if research and development is halted by regulatory authorities or if product approval fails.

Milestone technology fees are paid upon the achievement of contractual conditions. The company stated that the contract may be terminated if a contracting party breaches its contractual obligations, and in such cases, the contracting party is not required to return technology fees already received.