R & D investment 9.42 million yuan! Fosun Pharmaceutical is terminated the dm199 preparation license agreement

Fosun Pharmaceutical released the announcement that on September 27, 2018, its holding subsidiaries Jinzhou AoHong Pharmaceutical Co., Ltd (AoHong pharmaceutical) and dia medica therapeutics of Canada, Inc (diamedica) signed the license collaboration agreement AoHong Pharmaceutical Co., Ltd is licensed by diamedica to import, register, develop and commercialize the preparation of human tissue kallidinogenase-1 (rh-klk1) dm199 in the region (i.e China) and in the field (i.e treating human acute ischemic stroke), and has the right of reasonable re authorization and subcontracting in the region As the clinical scheme in China needs to be further demonstrated, the product failed to obtain the clinical trial approval of the State Drug Administration before July 1, 2019, and ohong pharmaceutical industry is not obliged to pay the first phase of R & D milestone payment According to the agreement, in this case, diamedica has the right to terminate the license agreement, and shall give the two parties 30 days of negotiation period; if the negotiation period expires and the two parties fail to reach an agreement on the relevant arrangements, both parties have the right to send a written notice to terminate the license agreement In view of the current situation of the product development, both parties failed to reach an agreement on the relevant arrangements for the subsequent performance of the agreement after the above agreed procedures On August 13, 2019 Beijing time, AoHong pharmaceutical received dia Medica's notice on termination of the license agreement: the license agreement will terminate immediately upon AoHong pharmaceutical's receipt of such notice As of July 2019, the group (i.e the company and its holding subsidiaries / units) has invested about 9.42 million yuan in R & D of this product (Unaudited, including the license fee of 500000 USD paid by ohong pharmaceutical to dia medica).