SBP GROUP (01177) Reaches Strategic Collaboration with Boehringer Ingelheim with Potential Total Value of US$7 Billion

SBP GROUP (01177) announces that the Group has entered into a strategic option and license agreement (the "Agreement") with Boehringer Ingelheim. This is the second collaboration between the two parties in the oncology field, with both parties committed to jointly establishing a long-term strategic partnership. The Agreement covers a total of six preclinical asset projects (the "Projects"), involving antibody-drug conjugates (ADCs) and T-cell engagers (TCEs). Five of the Projects originate from the Group's wholly-owned subsidiary LaNova Medicines Technology (Shanghai) Co., Ltd. (LaNova Medicines), and one Project originates from the Group's subsidiary Beijing Tide Pharmaceutical Co., Ltd. (Beijing Tide). Pursuant to the Agreement, the Group will lead the early-stage development of the Projects until completion of global Phase I clinical trials. Upon achievement of agreed clinical milestones, Boehringer Ingelheim has the right to exercise its option to obtain exclusive rights to develop, manufacture and commercialize (i) four of the Projects worldwide (excluding mainland China, Hong Kong and Macau) and (ii) the remaining two Projects worldwide. The Group will receive US$358 million in upfront and near-term payments, and is entitled to receive potential option exercise, development, regulatory and commercialization milestone payments totaling US$7 billion, as well as tiered royalties at up to high double-digit percentages based on future product sales. This strategic collaboration with Boehringer Ingelheim is an important milestone in the Group's international innovation strategy, further validating the Group's R&D strength in the field of next-generation oncology therapies. By combining the Group's innovative platforms and early-stage R&D capabilities with Boehringer Ingelheim's global oncology expertise, both parties aim to fully unlock the potential of the Projects and bring innovative treatment options to patients worldwide.