On 24 June 2019, Junshi Biosciences reported that they entered into a stock purchase agreement with Anwita Biosciences,Inc. ("Anwita"), pursuant to which the Company agreed to subscribe for 2,990,162 Series APreferred Stock in Anwita, representing approximately 20% of its outstanding shares, at a cashconsideration of US$10,000,000 (Press release, Anwita Biosciences, JUN 24, 2019, View Source [SID1234573150]). Anwita is a company headquartered in San Francisco Bay Area,focused on innovative protein engineering to generate best-in-class cytokines for immuno-oncology(IO).
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The Company and Anwita also entered into a license agreement (the "License Agreement") on 24June 2019 for the Company to develop and commercialize Anwita’s AWT008, a novel IL-21 fusionprotein, in the greater China territories (including mainland China, Taiwan, Macau, and HongKong). In consideration of the grant of the license by Anwita, the Company agreed to pay Anwitaan aggregate of US$2 million in cash after execution of the License Agreement and completionof technology transfer of AWT008. Also under the License Agreement, if AWT008 fulfills therequirement for IND filing, the Company may approve to proceed to file the IND and to conductsubsequent clinical trials to get regulatory approval for its commercial sales. In such event, Anwitawill be eligible to receive up to US$64.5 million in aggregate in development milestones for theAWT008 program.
IL-21 is an active cytokine to stimulate the activation of innate and adaptive immune cells, suchas natural killer (NK) cells and cytotoxic T cells. AWT008 is Anwita’s proprietary IL-21 fusionprotein with a prolonged half-life and improved in vivo antitumor activities in animal models, andis intended for development as single agent or in combination with other therapeutic agents due toits proposed mechanism.
This foreign investment needs to be approved or filed by the Commission of Commerce, theNational Development and Reform Commission and other government departments. The Companywill actively handle the approval or filing procedures of the Commission of Commerce, theNational Development and Reform Commission and other government departments involved in thisforeign investment. However, there are still certain uncertainties as to whether such approval orfiling can be ultimately obtained.
Cautionary Statement required by Rule 18A.05 of the Listing Rules of the Stock Exchange:The Company may not be able to ultimately develop and market AWT008 successfully. Investorsare reminded to exercise caution.