Press Release June 17, 2021

Zai Lab and MacroGenics Collaborate to Develop and Commercialize Four Bispecific Antibody Programs in Oncology with up to $1.4 Billion in Milestone Payments

The Life Sciences Asia team advised Zai Lab Limited (NASDAQ: ZLAB; HKEX: 9688) in its broad strategic collaboration and license agreement with MacroGenics (NASDAQ: MGNX) to develop and commercialize preclinical bispecific antibodies in oncology, involving up to four immuno-oncology molecules.

The first collaboration program covers a lead research molecule that incorporates MacroGenics’ DART platform and binds CD3 and an undisclosed target that is expressed in multiple solid tumors. The second collaboration program will cover a target to be designated by MacroGenics. For both molecules, Zai receives commercial rights in Greater China, Japan, and Korea and MacroGenics receives commercial rights in all other territories. For the lead molecule, Zai Lab receives an option upon reaching a predefined clinical milestone to convert the regional arrangement into a global 50/50 profit share. Zai Lab also obtains exclusive, global licenses from MacroGenics to develop, manufacture and commercialize two additional molecules.

Under the terms of the agreement, MacroGenics receives initial consideration from Zai Lab of $55 million, including an upfront payment of $25 million and an equity investment of $30 million in MacroGenics’ common stock at $31.30 per share. In addition, MacroGenics is eligible to receive up to $1.4 billion in potential development, regulatory and commercial milestone payments for the four programs. If products from the collaboration are commercialized, MacroGenics would also receive royalties on annual net sales in Zai Lab’s territories.

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

The Goodwin team was led by Wendy Pan and included Freddy Yip and Will Wang, with invaluable assistance from Jacob Osborn and Amy Josselyn.

For additional details on the collaboration, please read the press release and coverage in FierceBiotech, EndPoints News and MarketWatch.