Aribio said on the 26th that it received $10 million (about 15 billion won), part of the $60 million upfront payment from the global exclusive sales agreement for the Alzheimer's disease treatment AR1001 signed with Fosun Pharma, ahead of schedule.
The receipt came a little over 10 days after the two companies announced the AR1001 global licensing deal valued at up to $4.7 billion (about 7.1 trillion won).
The company said this "significantly eased concerns repeatedly raised in the biotech industry about 'delays in actual fund inflows after technology export announcements.'"
China is known to take generally several months for large overseas royalty remittances due to the State Administration of Foreign Exchange (SAFE) approval process.
Fosun Pharma's execution of part of the upfront payment immediately after the contract is seen as reflecting confidence in AR1001's clinical performance and its potential for global commercialization.
The global phase 3 trial (POLARIS-AD) of AR1001 under development by Aribio is currently underway in 13 countries with about 1,500 participants and is reportedly effectively entering the final stage.
AR1001 works by improving cerebral blood flow through PDE5 inhibition, which dilates blood vessels, suppressing neuronal cell death and even inducing the clearance of toxic proteins. About 95% of all patients in the phase 3 trial are participating in an extension study. This is cited as a factor that raises expectations for long-term dosing safety and efficacy.
The market is also paying attention to the possibility that AR1001 could become the world's first oral Alzheimer's disease treatment as the phase 3 trial nears completion and top-line results are set to be announced.
Meanwhile, Fosun Pharma said it is proceeding with the related procedures with the goal of executing the remaining $50 million upfront payment in June. The company explained that internal approval procedures are progressing smoothly and payments will be made sequentially as scheduled.
Aribio is also pursuing a merger with Solux, a KOSDAQ-listed company, and said it plans to accelerate its expansion into a convergence platform combining AI, data centers, and bio as corporations.