The board of directors of Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. announced on the group's collaboration with Merck Sharp & Dohme LLC (together with its affiliates, MSD) for the company's core product SKB264 (also known as MK-2870). In May 2022, the company licensed exclusive rights to MSD to develop, manufacture and commercialize SKB264 (MK-2870) in all territories outside of Greater China (includes Mainland China, Hong Kong, Macao, and Taiwan) (the License and Collaboration Agreement). As of the date of this announcement, MSD has announced that it initiated three pivotal phase 3 clinical trials, evaluating SKB264 (MK- 2870) as a monotherapy for the treatment of previously treated advanced or metastatic non-small cell lung cancer (NSCLC) with epidermal growth factor receptor (EGFR) mutations or other genomic alterations, as a monotherapy for the treatment of endometrial carcinoma (EC) previously treated with platinum-based chemotherapy and immunotherapy, and in combination with pembrolizumab for metastatic NSCLC expressing programmed death ligand 1 (PD-L1) greater than or equal to 50%.

Pursuant to the License and Collaboration Agreement and a written confirmation from MSD, the aforementioned clinical trials for NSCLC and EC have triggered payment of the relevant clinical milestones in the aggregate amount of USD 75.0 million. The company has received a partial payment from MSD and expects to receive the balance in the near future.