[E-Daily Reporter SONG YOUNG-DOO ] AriBio has received the full $60 million (approximately 90 billion won) option prepayment from Fosun Pharma, a global Chinese pharmaceutical company, under the global licensing agreement for its Alzheimer’s disease drug candidate “AR1001.” The fact that this global licensing agreement, valued at a total of 7 trillion won, has resulted in actual cash inflows is seen as proof of the company’s ability to execute the agreement and its commercialization potential. Having completed dosing of the final patient in its global Phase 3 clinical trial, AriBio plans to use the secured funds to accelerate data analysis, global regulatory approvals, and production preparations.
Aribio announced on the 13th that it had received an additional $50 million (approximately 75.2 billion won) in option prepayments from Fuxing Pharmaceutical in connection with the global exclusive licensing agreement for AR1001. Including the $10 million received earlier in May, the total of $60 million (approximately 90 billion won) has now been fully deposited.
This receipt of funds is significant in that it marks the completion of actual payment, going beyond the mere signing of the contract. Given that delays in payment of upfront fees or follow-up procedures are not uncommon even after large-scale technology transfer agreements are signed, the fact that the full option fee was paid as scheduled is interpreted as reaffirming Fuxing Pharmaceutical’s commitment to commercialization.
The two companies signed an option and license agreement in May for the global development and commercialization of AR1001. The total contract value is $4.7 billion (approximately 7 trillion won), making it the largest licensing deal for an Alzheimer’s disease treatment ever signed by a South Korean biotech company. If Fuxing Pharmaceutical exercises its option for global rights in the future, AriBio will receive an additional upfront payment, as well as development, approval, and sales milestones, and sales royalties.
Separately from the option agreement, Fuxing Pharmaceutical also signed a strategic equity investment agreement with AriBio worth a total of $27.5 million (approximately 42.5 billion won). With the global licensing agreement, cash payments, and strategic investment proceeding in quick succession, the collaboration between the two companies appears to be expanding beyond a simple technology transfer into a long-term strategic partnership.
Aribio plans to use the approximately 90 billion won it has secured to accelerate the follow-up procedures for the global Phase 3 clinical trial of AR1001 and preparations for commercialization. The company plans to announce the top-line results of the global Phase 3 clinical trial this fall, following data cleaning, database lock (DB Lock), and statistical analysis.
AR1001 is a once-daily, oral candidate drug for Alzheimer’s disease. Unlike the antibody-based injectables that currently dominate the market, its competitive advantages include high convenience of administration and a multi-mechanism-of-action approach.
The global Phase 3 clinical trial (POLARIS-AD) was conducted at approximately 230 clinical sites across 13 countries, including South Korea, the United States, Canada, Europe, and China, involving 1,535 patients with early-stage Alzheimer’s disease, and recently completed dosing of the last patient.
Jeong Jae-jun, CEO of AriBio, stated, “The fact that the full upfront payment was disbursed without a hitch in accordance with the scheduled procedures signifies that Fosun Pharma’s confidence in AR1001’s potential for clinical success and global commercial value has translated into concrete action.” He added, “With the Phase 3 topline results announcement approaching, we will spare no effort in preparing for global approval and commercialization.”
Meanwhile, AriBio has secured cumulative global exclusive sales rights for AR1001 valued at approximately 10 trillion won to date and is also pursuing a merger with KOSDAQ-listed Solux Co., Ltd.(290690).
