Arbutus, Qilu To Develop, Commercialize AB-729 In Mainland China, Hong Kong, Macau And Taiwan

(RTTNews) - Arbutus Biopharma Corp. (ABUS) and Qilu Pharmaceutical announced an exclusive licensing agreement and strategic partnership to develop and commercialize AB-729 for the treatment or prevention of hepatitis B in mainland China, Hong Kong, Macau and Taiwan.

As per the agreement, Arbutus would receive a $40 million upfront payment and would be entitled to additional payments of up to $245 million upon reaching certain development, regulatory and sales milestones.

Further, Qilu would be responsible for funding all development and commercialization activities for mainland China, Hong Kong, Macau and Taiwan. Arbutus is also entitled to receive double-digit tiered royalties up to the low twenties percent on annual net sales.

In addition, Qilu would make a $15 million equity investment in Arbutus common shares at a price of $4.19 per share, a 15% premium of Arbutus' previous 30-day average closing stock price calculated from December 10, 2021.

AB-729 is Arbutus's lead RNA interference or RNAi therapeutic that is currently in multiple Phase 2a proof-of-concept clinical trials designed to evaluate it in combination with other approved or investigational agents.