Cina-based clinical-stage oncology company Jacobio Pharma (1167.HK) announced on Friday that it has granted the China rights (including mainland China, Hong Kong, Macau, and Taiwan) of KRAS G12C inhibitor glecirasib and SHP2 inhibitor JAB-3312 to China-based Shanghai Allist Pharmaceuticals Co., Ltd (688578.SH).

Under the terms of the contract, Jacobio is to receive approximately RMB200m in the near term that includes an upfront payment of RMB150m and around RMB50m of compensation for research and development expenses and other payments. Additionally, the potential milestone payments upon achieving certain development, regulatory and commercial milestones are up to RMB700m. Jacobio Pharma is also eligible to receive tiered double-digit royalty payments on net sales of glecirasib and JAB-3312 from Allist, among which the royalty payment on net sales of JAB-3312 is up to 20%. The above amount includes value-added tax. Allist will be responsible for the commercialisation of glecirasib and JAB-3312 in China, and will pay the subsequent clinical development costs in China.

Dr Wang Yinxiang, Jacobio chairman and CEO, said, 'We are delighted to reach this cooperation with Allist. Allist has strong commercialisation capabilities in the field of lung cancer, and the first indication for glecirasib submitted the new drug application is lung cancer. We believe that with the deep fit of the advantages of both parties, this collaboration will demonstrate great clinical and commercial value. In addition to the cooperation with glecirasib, Allist also licensed-in the SHP2 inhibitor JAB-3312, which is the first SHP2 inhibitor entering a registrational trial globally. It is expected to become a first-line therapy in combo with glecirasib, which reflects Allist's foresight into the future of pipelines. We also look forward to jointly accelerating the development and commercialisation of the two products to meet the clinical needs of more patients.'

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