LION BIOTECHNOLOGIES, INC. (NASDAQ:LBIO) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.Entry into a Material Definitive Agreement.
On November 23, 2016, Lion Biotechnologies, Inc. (the Company)
entered into that certain Manufacturing Services Agreement (the
Agreement) with WuXi AppTec, Inc., a leading global contract
researcher for many of the world’s largest pharmaceutical,
biotech and medical device companies. The Agreement governs the
terms under which the Company may, from time to time, engage WuXi
AppTec, under separate statements of work, to provide
manufacturing and other services related to the Companys
autologous cell therapy products. The Agreement will also govern
certain work orders placed under the prior Cell Therapy
Development, Manufacturing and/or Tissue Processing Terms and
Conditions agreement that the parties entered into in September
25, 2015.
The Company and WuXi AppTec may, from time to time during the
term of the Agreement, enter into individual statements of work,
which statements of work will describe the services to be
performed by WuXi AppTec thereunder, the consideration to be paid
by the Company for such services, and other details related
thereto. The Company and WuXi AppTec have entered into two such
statements of work for two cGMP manufacturing suites to be
established and operated by WuXi AppTec for the Company, one of
which is expected to be capable of being used for the commercial
manufacture of the Companys products. The fee payable under the
first statement of work for the use of one of the manufacturing
suites during the next year, including the fees for the necessary
personnel, will be $2.5 million. Under the second statement of
work, WuXi AppTec agreed to establish and operate a second,
dedicated facility for a late stage / commercial manufacturing
cGMP suite. Under the second statement of work, the Company
agreed to transfer its current tumor infiltrating lymphocyte
manufacturing process to the dedicated cGMP cell processing suite
to be established at WuXi AppTecs facilities. The fee payable
under the second statement of work for the use of one of the
manufacturing suites during the next year, including the fees for
the necessary personnel, will be $5.85 million. Equipment for
this suite will be also be purchased in addition to these
amounts. Under the two statements of work, the Company will pay
WuXi AppTec additional fees based on the amount of testing,
analysis, raw materials purchased and manufacturing/production
services provided by WuXi AppTec.
The Agreement has a three-year term. However, the Company may
terminate the Agreement or any statement of work by providing
written notice of termination not less than 30 days in advance of
the date of termination; provided, that the Company shall remain
liable for any fees owed under any outstanding statement of work,
including termination fees. WuXi AppTec may terminate the
Agreement by providing written notice of termination not less
than 180 days in advance of the date of termination; provided,
that, the Agreement shall remain in full force and effect with
respect to any statements of work outstanding at the time that
such termination becomes effective.
About LION BIOTECHNOLOGIES, INC. (NASDAQ:LBIO)
Lion Biotechnologies, Inc. is a clinical-stage biotechnology company. The Company is focused on developing and commercializing cancer immunotherapy products designed to harness the power of a patient’s own immune system to eradicate cancer cells. The Company’s lead pipeline candidate, LN-144, is an adoptive cell therapy using tumor-infiltrating lymphocytes (TIL) to treat patients with refractory metastatic melanoma. The Company develops a portfolio of TIL-based products for the treatment of solid tumors. In addition to LN-144, the Company intends to develop additional TIL-based pipeline products to treat a range of solid tumors. It develops LN-145 to treat cervical and head and neck cancers. TIL therapy involves growing a patient’s TIL in special culture conditions outside the patient’s body, or ex vivo, and then infusing the T cells back into the patient in combination with interleukin-2 (IL-2). LION BIOTECHNOLOGIES, INC. (NASDAQ:LBIO) Recent Trading Information
LION BIOTECHNOLOGIES, INC. (NASDAQ:LBIO) closed its last trading session up +0.02 at 7.32 with 75,149 shares trading hands.