OBI Pharma, Inc. announced the termination of license agreement with Odeon for the rights of OBI-999 and OBI-833 in China, Hong Kong and Macau. Content of the contract or commitment: On 2022/2/22, OBI Pharma entered into a license agreement with Odeon Therapeutics (Hong Kong) Limited (hereinafter referred to as ? Odeon HK?) for the exclusive rights of OBI-999 and OBI-833 in China, Hong Kong and Macau, including the first right of negotiation for OBI-888 in China with a period of two years.

Under the terms of the agreement, OBI is eligible to receive upfront, milestones, and royalties on net sales. In lieu of monetary payment, OBI has received the shares issued from Odeon Therapeutics (Cayman) Limited (hereinafter referred to as ?Odeon KY?, the parent company who owned a 100% equity interest in Odeon HK), which is equivalent to US$ 12 million. Odeon KY has hereinafter become OBI?s subsidiary with 77.42% voting right.

Counterparty of the contract or commitment:Odeon KY and Odeon HK. OBI has rebuilt its pipeline as a measure to the recent development of cancer therapy. Take OBI-888 as example, as the antibody drug yield rate was reduced during scale-up production, the manufacturing costs increase dramatically for commercial viability.

Therefore, OBI resolved to discontinue its Phase II enrollment in 2022. Also, considering that OBI-999 has not shown its expected therapeutic potential for the enrolled patients in its clinical trial during past two years, OBI determined to stop further enrollment of patients in this Phase II trial and will focus existing resources on other ADC drugs in its pipeline. In summary, after thorough discussion with Odeon HK and Odeon KY, OBI Board resolved to terminate the license agreement with Odeon HK for the rights of OBI-999 and OBI-833 in China, Hong Kong and Macau.

OBI will reconsider the partnership with Odeon based on the development of new products. Meanwhile, OBI will return the shares of Odeon KY and will lose control over Odeon KY and its subsidiaries.