Antengene Biologics Limited, the licensor and a wholly-owned subsidiary of ANTENGENE-B (ASX: 06996), has entered into an exclusive and sub-licensable licensing agreement with a newly formed company established by K2 Therapeutics. This agreement pertains to ATG-106, an investigational CDH6 × CD3 bispecific T-cell engager (TCE) targeting solid tumors.

Furthermore, K2 and the licensor have executed an option agreement. Under this agreement, K2 has been granted an exclusive option to obtain an exclusive license for an undisclosed preclinical bispecific TCE candidate.

Pursuant to the licensing agreement and, should K2 exercise its option, the option agreement, the applicable licensee will possess exclusive rights to research, develop, manufacture, and commercialize the licensed products on a global scale, excluding Mainland China, Hong Kong, Macau, and Taiwan.

According to the terms of the option agreement, if K2 exercises its option, the licensor will be entitled to receive an upfront payment and near-term consideration totaling approximately $20 million. This includes the option exercise fee, near-term payments, the upfront payment, and a minority equity stake in a new company to be formed by K2.

The licensor will also be eligible to receive up to $960.5 million in potential development, regulatory, and sales milestone payments for the undisclosed TCE candidate. Additionally, the licensor is entitled to receive tiered royalties based on future net sales.

K2 Therapeutics, founded by MPM BioImpact, is a biotechnology company that operates as a scalable hub-and-spoke engine with a focus on building global impact. It possesses search and development capabilities unrestricted by technology modality or geography.

MPM BioImpact is a globally prominent biotechnology investment firm with over three decades of experience in founding and investing in innovative companies.