Rongchang Biotech (09995) signed a licensing agreement with Yantai Rongchang Pharmaceutical

Zhitong Finance App News, Rongchang Biotech (09995) announced that on November 9, 2026 (after the transaction period), the company signed a license agreement with the licensor Yantai Rongchang Pharmaceutical Co., Ltd. Based on this, the licensor agreed to grant the company an exclusive license to develop, manufacture, commercialize and otherwise use licensed compounds and licensed products worldwide.

According to the license agreement, the company must pay the licensor a one-time and non-refundable down payment of RMB 50 million; subject to reaching the milestones specified in the license agreement, the company must pay a milestone payment of up to a total of approximately RMB 4.87 billion when reaching certain milestones; and the company must pay royalties at a ratio of 3% to 7% based on the annual net sales of the licensed product, depending on the region where the relevant licensed product is commercialized and the level of annual net sales achieved by the relevant licensed product.

According to reports, the licensor has several rights and intellectual property rights relating to the pan-RAS (ON) small molecule inhibitor project (including RCZY-690). In 2023, when the licensor intended to carry out development work on RCZY-690, the relevant opportunity was presented to the company's attention. After considering the nature of RCZY-690 as a small molecule tumor product and still in the early development stage of a new drug, the company had no chance to undertake the project after the development risk was high. Thereafter, the licensor continued the research and development of the RCZY-690 using its own resources.

With the licensor's further development of the project and the company's deepening understanding of its development potential, the company believes that the project can complement the company's existing oncology product pipeline, which currently mainly focuses on solid tumor ADC and bispecific antibodies. The board believes that the project will broaden the company's oncology product portfolio and create opportunities for future joint development with other assets within the company's pipeline, thereby further enhancing the company's capabilities in the field of oncology. Through the license agreement, the company will obtain exclusive global rights to develop, register, produce and commercialize the project, and will be able to directly control and manage the future development and commercialization strategy of the project worldwide.

The company is aware that entering into a license agreement may involve a number of potential disadvantages. Specifically, the RCZY690 is still in clinical development and will require significant resources to further develop licensed products. The development and commercialization of licensed products involves risks and uncertainties inherent in the pharmaceutical industry, and there is no guarantee that the licensed products will be successfully developed or produce expected commercial returns.