As of August 21, 2020, NantKwest, Inc. (the "Company") reported that it entered into a definitive collaboration agreement (the "Collaboration Agreement") with ImmunityBio, Inc., an affiliate of the Company, to pursue collaborative joint development, manufacturing and marketing of certain Covid-19 therapeutics and vaccines (Filing, 8-K, NantKwest, AUG 21, 2020, View Source [SID1234563975]). The terms of the Collaboration Agreement supersede and replace the terms of the binding term sheet executed on May 22, 2020 as previously disclosed. Through their efforts, the parties agreed to jointly develop ceNK, haNK, mesenchymal stem cells (MSC), adenovirus constructs (Ad5), and N-803, a novel IL-15 cytokine superagonist, for the prevention and treatment of SARS-CoV-2 viral infections and associated conditions in humans, including without limitation, COVID-19. NantKwest will contribute the ceNK, haNK, MSC and certain of its manufacturing capabilities and ImmunityBio will contribute Ad5 and N-803. Ad5 will be developed as a vaccine, and ceNK, haNK, MSC and N-803 will each be developed as a therapeutic for treating COVID-19 at various stages of infection.
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From and after the effective date of the Collaboration Agreement, the parties will share equally in all costs relating to developing and manufacturing of the product candidates globally. With the exception of N-803, NantKwest will be primarily responsible for the manufacture of the products. Each party will be responsible for the regulatory affairs and the commercialization relating to its contributed products. The global net profits from the collaboration products will be shared 60% / 40% in favor of the party contributing the product on which the sales are based except if the parties mutually agree because of certain circumstances. All net profits from sales of combined collaboration products will be shared equally. This collaboration will be supervised by the joint steering committee which will be comprised of an equal number of representatives from both parties.
The foregoing description of the Collaboration Agreement does not purport to be complete and is subject to, and qualified in its entirety, by the full text of the Collaboration Agreement, a copy of which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2020, the terms of which are incorporated herein by reference.