Brii Biosciences Limited ("Brii Bio"), a leader in developing innovative treatments for diseases with significant unmet needs, has announced a strategic acquisition of intellectual property (IP) rights from VBI Vaccines, Inc. ("VBI") concerning BRII-179 (VBI-2601), a promising candidate in the fight against Hepatitis B Virus (HBV). This move, announced on February 14, 2024, marks a significant step forward in Brii Bio's efforts to enhance its HBV functional cure portfolio and secure its position in the global healthcare market.

Under the terms of the agreement, Brii Bio will initially issue a $2.5 million promissory note to VBI. This arrangement will release Brii Bio from future milestone and royalty payments related to PreHevbri, a critical component in the HBV treatment landscape. Upon meeting specific milestones, Brii Bio's financial commitment will increase to $10 million, granting them full access to all of VBI's IP for BRII-179. This strategic acquisition is designed to streamline operations and reduce financial obligations associated with the development and commercialization of BRII-179.

Moreover, the agreement includes plans for the transfer of manufacturing technologies for BRII-179 and PreHevbrio/PreHevbri to additional sites, aiming to expand Brii Bio's production capabilities and global commercial supply network. This expansion is contingent upon achieving certain milestones and securing necessary approvals.

In a parallel development, Brii Bio will acquire exclusive rights to develop and commercialize VBI-1901, an immunotherapeutic candidate for glioblastoma (GBM), in the Asia-Pacific region, excluding Japan. This acquisition, valued at a $5 million promissory note to VBI, signifies Brii Bio's intent to diversify its portfolio and penetrate new markets, leveraging VBI-1901's fast-track and orphan drug designations by the U.S. FDA.

Dr. Zhi Hong, Ph.D., Chairman and CEO of Brii Bio, expressed gratitude towards the VBI team in Rehovot for their dedication and resilience in maintaining uninterrupted supplies of BRII-179, despite significant challenges. Dr. Hong emphasized the importance of integrating R&D and manufacturing capabilities to support the late-stage development of HBV programs and ensure a robust global manufacturing strategy.

This agreement not only strengthens Brii Bio's HBV treatment portfolio but also positions the company for future growth and innovation in addressing global health challenges.