Junshi Biosciences (688180.SH) announced that recently, the company signed a "License Agreement" with the licensor; Licensor grants the Company exclusive license and sub-license rights to develop, manufacture, use, import, export, sell and commercialize in any other way the two dual-target fusion proteins in Greater China, and the Company and the Licensor have all rights and interests in developing, manufacturing, using, importing, exporting, selling and commercializing in any other manner one of the Licensed Products worldwide on a 50%:50% basis.

According to the announcement, the subject of this transaction is two dual-target fusion proteins (i.e., licensed product 1 and licensed product 2), which are mainly used for the treatment of malignant tumors. At present, licensed product 1 is in the overseas phase I clinical trial stage, the company has submitted an application to the National Medical Products Administration for the phase I clinical trial of licensed product 1 in China, and licensed product 2 is in the preclinical research stage.

It is reported that after the license agreement is signed, the company will pay an upfront payment of $1.5 million to the licensor. The Company will pay the Licensor a milestone payment of up to RMB740 million in aggregate based on the R&D progress and sales of the Licensed Products. The Company will pay Licensor a single-digit percentage of the annual net sales of the Licensed Product in Greater China based on sales of one of the Licensed Products in Greater China. In addition, if Licensor grants a third party based on its rights under Licensor's intellectual property or sub-licensing rights obtained from the Company to develop, commercialize, manufacture, use, sell, import or export the Licensed Products outside of Greater China, the Licensor may pay the Company up to 20% of the sub-license revenue or US$200 million, whichever is lower.