Laekna (HKG:2105) granted Vasque Bio exclusive rights to develop and commercialize its cancer drug candidate LAE118 outside Greater China under a licensing agreement, according to a Wednesday Hong Kong bourse filing.
The biotechnology company will receive a $10 million upfront payment and is eligible for up to $517 million in development and sales milestone payments under the deal.
Laekna will also have the right to acquire, at no additional cost, up to a high-teen-percentage stake in Vasque Bio's outstanding common stock, or to receive cash payments in lieu of the shares.
In addition, the company is entitled to tiered royalties ranging from single-digit to double-digit percentages on future net sales of LAE118 in the licensed territory.
It may also receive additional payments tied to certain strategic transactions involving the drug candidate, the filing said.
Shares of Laekna were down over 4% in Wednesday morning trade.