As of 9:30 a.m. on May 29, the share price of NIBEC on the KOSDAQ market was trading at 28,950 won, up 29.82% from the previous day's closing price. This surge appears to be due to the announcement after the market closed the previous day regarding the signing of a technology transfer agreement with a U.S. biotech company.
NIBEC produces biomaterials for tissue regeneration and oral health products, and is also engaged in research and development (R&D) of peptide pharmaceuticals and biomedical materials as new business ventures.
The previous day, NIBEC announced that it had signed a technology transfer agreement to license out its peptide-based anti-fibrosis drug (NP-201) to an undisclosed U.S.-based pharmaceutical and biotech company. The deal is valued at up to $435 million (approximately 595.2 billion won), including an upfront payment and milestone payments. The running royalty to be received after final commercialization is 4% of net sales.
The upfront payment is $8 million (1.09 billion won), which is expected to be received within 30 days from the effective date of the contract.
NIBEC described the counterparty as "a company with research, development, and commercialization capabilities in the fields of idiopathic pulmonary fibrosis (IPF) and pulmonary arterial hypertension (PAH)." Through this agreement, NIBEC has decided to transfer the exclusive global rights for the development and commercialization of NP-201. NP-201 has completed Phase 1 clinical trials in Australia and is currently preparing to enter Phase 2 trials.
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