Ascentage Pharma Group International announced that on June 14, 2024 (after trading hours), Ascentage Pharma Group International, Ascentage HK, Ascentage GZ, Ascentage SZ and Takeda International entered into the Exclusive Option Agreement to grant Takeda International an exclusive option to enter into an exclusive license agreement for olverembatinib (HQP1351), an oral, potentially best-in-class third-generation BCR-ABL TKI, which is currently in development for CML and other hematological cancers. If exercised, the Option would allow Takeda International to license global rights to develop and commercialize olverembatinib in all territories outside of, among others, mainland China, Hong Kong, Macau and Taiwan, China. Pursuant to the Exclusive Option Agreement, Ascentage shall be solely responsible for all clinical development of olverembatinib before the potential exercise of the Option.

Ascentage will receive an option payment of USD 100 million upon signing of the Exclusive Option Agreement and will be eligible for an option exercise fee and additional potential milestones of up to approximately USD 1.2 billion and double-digit royalties on annual sales if Takeda International exercises the Option to license olverembatinib. Additionally, the Company is expected to receive a minority equity investment from Takeda International.