GI Innovation announced in a regulatory filing on the 23rd that it is set to receive a technology license fee of $3.5 million (approximately 4.6 billion won) following the achievement of a milestone — the dosing of the first patient in the Japanese Phase 2 clinical trial of its allergy treatment 'GI-301.'

The payment stems from a technology transfer agreement signed on October 16, 2023, with Japan's Maruho, covering the development and commercialization rights for GI-301 in Japan. Under the contract, the milestone condition was the dosing of the first patient in the Phase 2 clinical trial in Japan.

After receiving notice of the milestone achievement from the contract counterparty, the company issued an invoice on October 23. The license fee is expected to be received within 60 days of the invoice date, as stipulated in the contract.

Regarding the calculation basis, the $3.5 million milestone fee amounts to approximately 4.6 billion won based on the Seoul foreign exchange brokerage rate of 1,324.60 won per dollar as of October 23. This exceeds 10% of the previous year's revenue of 5,838,086,757 won, making it subject to mandatory disclosure.

However, the company noted that if future clinical trials, approvals, or commercialization do not materialize, the technology transfer agreement may be terminated. Even in that case, the company explained, there is no obligation to return the milestone payment.

Additionally, GI Innovation plans to promptly disclose any changes to the key contract terms or any disclosure obligations that may arise.