Yuhan secured ₩230 billion in two years

Janssen pays $65 million extra milestone to Lazertinib

Lazertinib down payment and milestone $150 million

5 technology exports since 2018, secured more than $200 million in technology fees

Yuhan has secured about ₩230 billion in new drug technology fees over the past two years.

 

It has signed five technology transfer contracts, and has also collected milestones of more than ₩100 billion in the development stage after technology export.

 

Front view of Yuhan headquarters

Yuhan announced on the 24th that it will receive a staged technology fee (milestone) of $65 million (₩72.3 billion) for the anticancer drug Lazertinib from Janssen Biotech.

 

An additional milestone occurred as Janssen started recruiting subjects for a phase III clinical trial of its own anticancer drug, Amivantamab and Lazertinib.

 

Lazertinib is a third-generation EGFR targeted anticancer drug that Yuhan handed over to Janssen Biotech in November 2018.

 

The total contract size, including a down payment of $50 million without obligation to return, is up to $1.25 billion.

 

Lazertinib's additional milestone is the second since the temporary export.

 

Yuhan received $35 million milestone for Lazertinib from Janssen Biotech in April.

 

Janssen paid an additional milestone to Yuhan when he began a trial of Amivantamab and Lazertinib combination therapy at the time.

 

Yuhan has secured a total of $150 million, including a down payment of $50 million, only by the transfer of Lazertinib technology.

 

40% of Lazertinib's technology fees are redistributed to the original developer, Oscotec.

 

For Yuhan, technology fees have been a major source of revenue since 2018.

 

Yuhan has signed a total of five new drug technology export contracts since July 2018.

 

In July 2018, it transferred the technology of YH14618, a treatment for degenerative disc disease, to Spine Biopharma in the United States.

 

It received a down payment of $650,000, and was guaranteed $217.5 million for milestones in stages according to development, licensing and sales.

 

In November 2018, it signed a technology export contract with Janssen for Lazertinib.

 

In January of last year, it signed a license and joint development contract with Gilead Sciences for new drug candidates that act on two drug targets for the treatment of non-alcoholic steatohepatitis (NASH).

 

It is a condition of receiving a down payment of $15 million and receiving $777 million in milestones for each stage of development, licensing and sales.

 

In July of last year, Yuhan signed a technology transfer contract with Boehringer Ingelheim for a total of $870 million related to the NASH treatment YH25724.

 

The down payment without obligation to return is $40 million.

 

Out of the $40 million down payment, they agreed to receive $10 million upon completion of the non-clinical toxicity test, but after the nonclinical toxicity test was completed in 9 months, the remaining down payment was received in April.

 

In August, it signed a technology transfer contract with Processa Pharmaceuticals of the United States for a functional gastrointestinal disease treatment candidate YH12852.

 

Yuhan received a down payment of $2 million as shares, which were not obligated to return.

 

Yuhan has secured a total of $2,765 million (about ₩230 billion) in technology fees for about two years since 2018.

 

It is more than 18 times the operating profit of ₩12.5 billion last year.

 

Quarterly Yuhan technology fee operating profit (Unit: ₩million, Source: Yuhan, the FSS)

Yuhan's recent technology fees are higher than operating profits.

 

As of this year, Yuhan has recognized a total of ₩77.9 billion in technology fees.

 

In the first and second quarters, ₩1.1 billion and ₩35.7 billion were reflected, respectively, and an additional ₩16.9 billion was recognized in the third quarter.

 

Yuhan's cumulative operating profit in the third quarter was ₩57.1 billion.

 

It is calculated that if there was no inflow of technology fees, it would have recorded a deficit.

 

Yuhan's technology fee revenue was ₩23.2 billion last year, far exceeding its operating profit (₩12.5 billion).

 

From 2019 to the third quarter, Yuhan recognized a total of ₩101.1 billion in technology fees.

 

In the future, additional technology fee revenues reflected in earnings exceed ₩100 billion.