BeyondSpring and Jiangsu Hengrui Pharmaceuticals Co. Ltd. announced an exclusive commercialization and co-development agreement in Greater China (“the Territory”) for BeyondSpring's investigational drug candidate plinabulin, a first-in-class, selective immunomodulating microtubule-binding agent (SIMBA). Plinabulin in combination with G-CSF is currently under NDA Priority Review by the U.S. Food and Drug Administration (FDA) and the China National Medical Products Administration (NMPA) for the prevention of chemotherapy-induced neutropenia (CIN). BeyondSpring recently announced positive topline Phase 3 results from its DUBLIN-3 study of plinabulin in combination with docetaxel for the treatment of 2nd and 3rd line, EGFR wild-type non-small cell lung cancer (NSCLC). BeyondSpring will still retain 100% of the global plinabulin rights outside of Greater China. Under the terms of the agreement, Wanchunbulin will grant Hengrui exclusive rights to commercialize and co-develop plinabulin in the Greater China markets, including mainland China, Hong Kong, Macau and Taiwan. Wanchunbulin will retain the manufacturing rights of plinabulin in the Territory and will book all plinabulin revenue in the Territory. Hengrui will receive a pre-determined percentage of the net sales in each quarter. Wanchunbulin will receive the equivalent of up to RMB 1.3B (est. USD 200 million), including an upfront payment of RMB 200 million (est. USD 30 million) and regulatory and sales milestones of up to RMB 1.1 billion (est. USD 170 million). Hengrui will be responsible for all costs associated with commercialization of plinabulin in the Territory. Pursuant to the terms, Wanchunbulin will be responsible for 100% of the clinical and regulatory costs for the first two indications for plinabulin: prevention of CIN and 2nd/3rd line treatment of NSCLC (EGFR wild type). Hengrui will fund 50% of the clinical development costs for additional indications for plinabulin in the Territory, with a Joint Steering Committee overseeing the clinical strategy and priorities. With deep understanding of plinabulin and its potential, Wanchunbulin will lead the protocol design and development for additional indications. In connection with the signing of the collaboration, Hengrui will make an equity investment at RMB 100 million (est. USD 15 million) into the Wanchunbulin subsidiary at a pre-money valuation of USD 560 million.