Lepu Biopharma Co., Ltd (Stock Code: 02157.HK) announced that it has entered into an exclusive licensing agreement with ArriVent BioPharma, Inc. for MRG007, a Potential Best-in-Class antibody- drug conjugate ("ADC") for the treatment of Gastrointestinal ("GI") Cancers.

Under the terms of the agreement, Lepu Biopharma has granted ArriVent exclusive rights to develop, manufacture and commercialize MRG007 outside of Greater China which includes mainland China, Hong Kong, Macau and Taiwan. Lepu Biopharma will receive a one-time upfront and near-term milestone payments totaling $47 million in cash and is eligible to receive up to $1.16 billion in development, regulatory and sales milestones and tiered royalties on net sales outside of Greater China.

MRG007 has shown robust antitumor activity in preclinical models of GI cancers and a favorable therapeutic index based on IND enabling studies. The first IND submission is planned for the first half of 2025 with an initial clinical development focus in colorectal, pancreatic and other GI cancers.

Sui Ziye Ph.D., Executive Director and Chief Executive Officer of Lepu Biopharma said, "We are very pleased to be working with ArriVent. Lepu Biopharma has been dedicated to promoting the technological advancement of innovative ADCs in China. We believe MRG007 is one of our potential best-in-class ADC molecules in pre-clinical stage. The agreement is a recognition of our self-dependent R&D capabilities. We look forward to collaborating with ArriVent to advance the development of MRG007 globally and help bring this potential promising therapy to more patients around the world."

Bing Yao, Chairman and Chief Executive Officer of ArriVent said ," We believe MRG007 is a potential best-in-class ADC for the treatment of GI malignancies based on preclinical and IND enabling studies. Expanding our pipeline with MRG007 furthers our mission to develop novel medicines for cancers with high unmet needs worldwide and accelerates our ADC portfolio by adding a program which plans to enter the clinic in the near-term. We look forward to collaborating with Lepu Biopharma in advancing this program globally."