The board of directors of Shanghai Junshi Biosciences Co., Ltd. announced that, on 10 January 2022, Coherus has initiated the process to exercise its option (the "JS006 Option") to obtain a license to exploit JS006 and any product that contains JS006 in the treatment or prevention of diseases and disorders in humans in the United States and Canada (the "Coherus Territory"). Subject to applicable laws and terms and conditions agreed between the parties to the License and Commercialization Agreement (the " Parties "), Coherus will pay to the Company a one-time, non-refundable exercise payment of US$35 million, and upon achieving the prescribed milestone events up to an aggregate $255 million, plus 18% royalty on the annual net sales of products containing JS006 in the Coherus Territory, each pursuant to the License and Commercialization Agreement. Closing of the transaction is expected to follow receipt of any applicable regulatory clearances.

JS006 is a recombinant humanized monoclonal antibody specifically against human TIGIT, developed independently by the Company. Pre-clinical studies show that JS006 can specifically block TIGIT-PVR pathway, stimulate the activation of killing immune cells and secrete tumor-killing factors. Combination of anti-TIGIT and anti-PD-1/PD-L1 antibodies showed a synergistic potential to enhance antitumor response to overcome anti-PD-1 resistance and broaden the cancer patient population that can benefit from immunotherapy.

As at the date of this announcement, JS006 has been approved for clinical trials by the National Medical Products Administration and the U.S. Food and Drug Administration. A dose escalation and dose expansion Phase I clinical study (NCT05061628) evaluating the safety, tolerability and pharmacokinetic properties of JS006 as monotherapy and in combination with Toripalimab in patients with advanced solid tumors is ongoing.