NovoCure Limited Enters into a License and Collaboration Agreement with Zai Lab Co., Ltd
September 12, 2018 at 12:47 pm
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On September 10, 2018, NovoCure Limited entered into a License and Collaboration Agreement with Zai Lab (Shanghai) Co. Ltd. Under the terms of the Agreement, the Company exclusively licensed the rights to perform clinical studies, sublicense to affiliates and third parties (subject to the Company's consent), sell, offer for sale and import Tumor Treating Fields products in the field of oncology (each, a Licensed Product" and collectively, the Licensed Products") to Zai in China, Hong Kong, Macau and Taiwan (the Territory"). In partial consideration for the license grant to Zai for the Territory, Zai will pay the Company a non-refundable, up-front license fee in the amount of $15 million, as well as certain development, regulatory and commercial milestone payments up to $78 million, and tiered royalties at percentage rates from 10 up to the mid-teens on the net sales of the Licensed Products in the Territory. Zai will purchase Licensed Products exclusively from the Company at the Company's fully burdened manufacturing cost. The Company and Zai have agreed in principle on the supply terms and will finalize a supply agreement following the execution of the Agreement. The Agreement is effective from and after September 10, 2018, and continues, on a region-by-region and Licensed Product-by-Licensed Product basis, in effect until the expiration of and payment by Zai of all of Zai's royalty payment obligations applicable to such Licensed Product and such region as specified in the Agreement. Each party may terminate the Agreement upon the material breach of the Agreement by the other party, subject to certain cure periods. In addition, Zai may terminate the Agreement for convenience on twelve months' prior notice prior to commercializing a Licensed Product and on eighteen months' prior notice after commercializing a Licensed Product, and the Company may terminate the Agreement due to Zai's diligence failure or material FCPA violation, subject to certain cure periods and dispute resolution mechanisms if disputes arise with respect to such failure or material violation, each as defined in the Agreement.
NovoCure Limited is a global oncology company. The Company is engaged in the development, manufacture and commercialization of Tumor Treating Fields (TTFields) devices, including Optune and Optune Lua for the treatment of solid tumor cancers. Its commercialized products are approved in certain countries for the treatment of adult patients with glioblastoma, malignant pleural mesothelioma and pleural mesothelioma. It is conducting pivotal studies evaluating the use of TTFields in the treatment of ovarian cancer, brain metastases from non-small cell lung cancer (NSCLC) (brain metastases) and pancreatic cancer. Its key priorities are to drive commercial adoption of Optune, its commercial TTFields device. It also has a license to market Optune in China, Hong Kong, Macau and Taiwan. It has ongoing or completed clinical trials investigating Tumor Treating Fields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer and ovarian cancer.