On August 1, 2023, EQRx provided written notice to Hansoh (Shanghai) Healthtech Co., LTD. and Jiangsu Hansoh Pharmaceutical Group Company LTD. (Hansoh) of its termination of the Strategic Collaboration License Agreement dated July 22, 2020 between EQRx and Hansoh (as amended, the Hansoh Agreement), which termination will be effective in accordance with the terms of such agreement. The parties are in discussions regarding any transition activities. Under the Hansoh Agreement, EQRx acquired an exclusive license for the research, development and commercialization of aumolertinib, a third generation EGFR inhibitor, worldwide, with the exception of mainland China, Hong Kong, Macau and Taiwan (the Hansoh Territory).

The Hansoh Agreement also provided EQRx with a non-exclusive license in the Hansoh Territory to research and develop aumolertinib for purposes of obtaining regulatory approval for, and commercialization of aumolertinib for use outside of the Hansoh Territory. EQRx made an upfront non-refundable, non-creditable payment under the Hansoh Agreement of $25.0 million. Additionally, if EQRx had achieved all of the development and commercialization milestone events under the Hansoh Agreement, Hansoh would have been eligible to receive in total (i) up to $90.0 million in development and regulatory milestone payments, and (ii) up to $420.0 million in sales milestone payments.

If Hansoh had elected to opt out of sharing certain global development costs in accordance with the terms of the Hansoh Agreement, the total potential development and regulatory payments Hansoh would have been eligible to receive would have been reduced to $55.0 million, and the total potential sales milestone payments would have been reduced to $350.0 million. Hansoh would have also been entitled to royalty payments under the Hansoh Agreement.