Aribio, which is pursuing a merger with Solux, has confirmed that it will receive the contract payment for the technology export of Alzheimer's treatment AR1001 from Arcera, a global pharmaceutical company established by the Abu Dhabi Development Holding Company (ADQ), on the 7th. It is understood that ADQ is also considering direct investment in Aribio.
According to the investment banking (IB) industry, Aribio will receive the contract payment for the total technology export amounting to $600 million, which was signed with Arcera in June. This contract grants exclusive rights for AR1001 in the Middle East, Latin America, Africa, Ukraine, and the Commonwealth of Independent States (CIS) regions. It was concluded through the Industrial Bank of Korea's 'Global Partnership Support Program.'
An Aribio official said, 'The inflow of this contract payment is a clear signal that Aribio's technology and commercialization success potential for Alzheimer's treatment AR1001 have been internationally recognized.' However, the specific amount has not been disclosed according to the contract between the two companies that stipulates not to reveal details such as contract payments until the completion of ADQ's investment in Aribio.
Currently, it is reported that the UAE sovereign wealth fund ADQ is in negotiations to make a direct investment in Aribio. The financially well-off UAE exports oil and manages its wealth through overseas investments via sovereign wealth funds. ADQ is the third-largest sovereign wealth fund affiliated with the Emirate of Abu Dhabi, interested in areas such as health and pharmaceuticals, energy, power, water, transportation, and information and communications technology (ICT). Arcera, established by ADQ, is also a global life science company supplying over 2,000 pharmaceuticals to more than 90 countries.
Aribio is currently conducting phase 3 clinical trials of the oral Alzheimer's treatment AR1001 in 13 countries, including the United States and Europe. With the conclusion of the clinical trials and the top line announcement expected in the first half of next year, the company is solidifying technology transfer negotiations in the U.S., Europe, and other regions.
Recently, Aribio selected Chinese pharmaceutical company Puxing Pharmaceutical as a partner responsible for the manufacturing and commercialization of AR1001 in the Chinese market. As a result, the company expects that the 'uncertainty of contracts in China,' which was one of the obstacles in the merger with Solux, will be resolved. The merger date for these companies is November 4th.