Press Release June 03, 2021

Mirati Therapeutics and Zai Lab Enter into a Great China Collaboration for Adagrasib with $65 Million Upfront, up to $273 Million in Milestone Payments, and High-Teen- to Low-Twenties-Percent Tiered Royalties

The Life Sciences team advised Mirati Therapeutics, Inc. (NASDAQ: MRTX) collaboration and license agreement with Zai Lab Limited (NASDAQ: ZLAB; HKEX: 9688) for adagrasib, a small-molecule KRASG12C inhibitor, in Greater China (mainland China, Hong Kong, Macau, and Taiwan).

Mirati is a California-headquartered clinical-stage biotechnology company whose mission is to discover, design, and deliver breakthrough therapies to transform the lives of patients with cancer and their loved ones.

Zai Lab is a commercial-stage biopharmaceutical company focused on bringing transformative medicines for cancer and infectious and autoimmune diseases to patients in China and around the world.

Under the terms of the agreement, Zai Lab obtains the right to research, develop, manufacture and exclusively commercialize adagrasib in Greater China. Zai Lab will support accelerated enrollment in key global, registration-enabling clinical trials of adagrasib in patients with cancer who have a KRASG12C mutation. Mirati will receive a $65 million upfront payment, with the potential to receive up to an additional $273 million in development, regulatory and sales-based milestone payments. Mirati is also eligible to receive high-teen- to low-twenties-percent tiered royalties based on annual net sales of adagrasib in Greater China.

The Goodwin team was led by Noelle Dubiansky and Kingsley Taft.

For more details, read the press release and articles in Precision Oncology News, The Pharma Letter, and Seeking Alpha.