NeoImmuneTech announced on the 19th that it has signed an exclusive technology transfer contract with Tolerance Bio, Inc. of the United States for NT-I7 in indications related to thymic function. The total deal value is 260 million USD (approximately 366.9 billion won) plus a 4% fully diluted equity stake in the counterparty.

The contract transfers exclusive development and commercialization rights for NT-I7 targeting indications related to thymic dysfunction, including immune reconstitution in people living with HIV. The indication aims to protect, maintain, restore, and enhance thymic function, as well as to achieve thymus-dependent T-cell immune reconstitution.

In terms of financial conditions, the upfront payment is a 4% fully diluted equity stake received in Tolerance Bio common shares. Upon achievement of clinical development and sales milestones, the company will receive a total of 260 million USD in staged milestone technology fees. The won conversion was calculated using the announced exchange rate of 1,411 won per dollar as of August 19. The company will also receive running royalties at agreed staged rates based on annual net sales. However, the details of the milestone payments and running royalties were not disclosed by mutual agreement between the two companies.

The contract covers North America, South America, Central America, and Europe, and the contract period lasts until the expiration of the royalty term. Royalty expiration dates may vary by country, and no specific dates are stipulated in the contract.

Immuno-oncology, a key area under development by NeoImmuneTech, is excluded from the scope of this licensing agreement. The company retains the rights to that area.

The company stated that revenue recognition from this contract may vary depending on the success of clinical trials and regulatory approvals, and thus may not be realized. The upfront payment, staged milestone payments, and royalties carry no obligation of repayment, and milestone payments can be received once the relevant conditions are met. If clinical trials, approvals, or commercialization are not realized, the contract may be terminated midway by mutual agreement. NeoImmuneTech has no obligation to pay penalty fees upon termination of the contract.