ArriVent Secures Exclusive License for Potential Best-in-Class ADC in Gastrointestinal Cancers

ArriVent BioPharma, Inc. (Nasdaq: AVBP) has entered into an exclusive license agreement with Lepu Biopharma Co., Ltd (Stock Code: 02157.HK) for MRG007, a novel antibody-drug conjugate (ADC) with the potential to be a best-in-class treatment for gastrointestinal (GI) cancers. The agreement grants ArriVent exclusive global rights to develop, manufacture, and commercialize MRG007 outside of Greater China, which includes mainland China, Hong Kong, Macau, and Taiwan.

Under the terms of the agreement, Lepu Biopharma will receive a one-time upfront payment and near-term milestone payments totaling $47 million in cash. Additionally, Lepu Biopharma is eligible to receive up to $1.16 billion in development, regulatory, and sales milestones, as well as tiered royalties on net sales outside of Greater China. The upfront payment and projected research and development costs, including potential milestone payments, do not change ArriVent's previously announced expected cash runway into 2026.

MRG007 has demonstrated robust antitumor activity in preclinical models of GI cancers and a favorable therapeutic index based on IND enabling studies. The first Investigational New Drug (IND) submission is planned for the first half of 2025, with an initial clinical development focus on colorectal, pancreatic, and other GI cancers.

Bing Yao, Chairman and Chief Executive Officer of ArriVent, commented on the agreement: "We believe MRG007 is a potential best-in-class ADC for the treatment of GI malignancies based on preclinical and IND enabling studies. Expanding our pipeline with MRG007 furthers our mission to develop novel medicines for cancers with high unmet needs worldwide and accelerates our ADC portfolio by adding a program which plans to enter the clinic in the near-term. We look forward to collaborating with Lepu Biopharma in advancing this program globally."

Ziye Sui, Ph.D., Executive Director and Chief Executive Officer of Lepu Biopharma, added: "We are very pleased to be working with ArriVent. Lepu Biopharma has been dedicated to promoting the technological advancement of innovative ADCs in China. We believe MRG007 is one of our potential best-in-class ADC molecules in pre-clinical stage. The agreement is a recognition of our self-dependent R&D capabilities. We look forward to collaborating with ArriVent to advance the development of MRG007 globally and help bring this potential promising therapy to more patients around the world."

The exclusive license agreement for MRG007 represents a strategic expansion for ArriVent in the rapidly growing ADC market. The deal's structure, with a balanced risk-reward profile, aligns with ArriVent's cash runway and long-term growth prospects. The global rights (excluding Greater China) provide a significant market opportunity, particularly in lucrative Western markets. The near-term IND submission catalyst and the potential to address unmet medical needs in GI cancers further strengthen ArriVent's competitive position in the global ADC market.



In conclusion, ArriVent's exclusive license agreement for MRG007 positions the company to capitalize on the growing demand for innovative ADC therapies in the global oncology market. By securing the rights to develop and commercialize this promising ADC candidate, ArriVent strengthens its competitive position, accelerates its ADC portfolio development, and addresses significant unmet medical needs in GI cancers. As MRG007 progresses through clinical development and ultimately achieves commercial success, ArriVent will generate additional revenue through milestone payments and royalties, supporting its long-term growth prospects.