SK Biopharm's shares rose by 2.05% to 79,800 won following news of its acquisition of a Parkinson's disease drug candidate for further development.
According to the Korea Exchange, the stock price increased by 1,600 won on the day of the announcement.
The rise in share price is attributed to the licensing agreement for the Parkinson's drug candidate announced that day.
SK Biopharm disclosed that it has signed a licensing agreement with domestic biotech firm First Bio Therapeutics for the global exclusive rights to a dual inhibitor, c-Abl/LRRK2, currently under development as a treatment for Parkinson's disease.
This agreement is a 'license in' contract, meaning SK Biopharm is purchasing the rights to the drug candidate from First Bio Therapeutics, rather than a technology transfer agreement where SK Biopharm would receive payment for technology.
The contract is valued at up to 430.758 billion won. However, SK Biopharm will not pay the entire amount upfront. Initially, within 30 business days from the contract signing date, SK Biopharm will pay a non-refundable deposit of 2.5 billion won to First Bio Therapeutics.
Subsequently, if both companies meet agreed-upon conditions during the research, development, and commercialization phases, SK Biopharm will make additional payments of up to 72.5 billion won. After the product launch, if certain net sales targets are achieved, SK Biopharm will pay milestone fees of up to 355.758 billion won (approximately $260 million). Additionally, once product sales commence, SK Biopharm will pay ongoing royalties based on net sales.
Thus, of the maximum contract value of 430.758 billion won, the only confirmed payment at this time is the deposit of 2.5 billion won. The remaining 428.258 billion won will depend on future research, development, commercialization, and sales target achievements.
* This article has been translated by AI.
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