On November 7, 2018 Alligator Bioscience (Nasdaq Stockholm: ATORX) reported that it will receive payments of more than USD 3.5 million under its collaboration agreement with the South Korean company AbClon Inc. ("AbClon") (Press release, Alligator Bioscience, NOV 7, 2018, View Source [SID1234538674]). This is following the exercising of an option by a third party, Shanghai Henlius Biotech, Inc. ("Henlius"), to expand from a regional to a global agreement.

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In October 2016, Henlius signed a license agreement with AbClon, encompassing the intellectual property and commercial rights of the monoclonal HER2 antibody AC101 in China (including Taiwan, Hong Kong and Macao). The two parties have now signed an amendment to the agreement in which Henlius will exercise its option to secure the right to develop and commercialize AC101 globally.

The exercising of this option triggers a payment of USD 10 million (approx. SEK 90 million) from Henlius to AbClon. As Alligator holds an ownership interest in this project, this entitles Alligator to 35 percent of AbClon’s income from the agreement with Henlius. The payment of USD 3.5 million (before foreign tax) to Alligator will be made in two parts, the first half due in 2018 and the second half in H1 2019.