On February 28, 2022 Clarity Pharmaceuticals (ASX: CU6) ("Clarity"), a clinical-stage radiopharmaceutical company developing next-generation products to address the growing needs in oncology, reported an update regarding the Company’s negotiations with China Grand Pharmaceutical and Healthcare Holdings Limited (China Grand) (Press release, Clarity Pharmaceuticals, FEB 28, 2022, View Source [SID1234609197]).

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As noted in the Company’s Prospectus, Clarity and China Grand agreed to enter exclusive discussions for the grant of a licence to permit China Grand to develop, manufacture and commercialise one or more of the Company’s products in the Greater China territory. In connection with those discussions, and in consideration for exclusivity, the Company and China Grand entered into an Option Deed on 1 July 2021, with an expiration date on the earlier of a number of events including a period of six months from the date of the Company listing on the ASX.

Under the Deed, the Company issued 25,543,912 options to China Grand to acquire shares at an exercise price of A$1.75. Those options lapsed and were cancelled at 5pm on 25 February 2022 (Expiry Date), being six months from Clarity’s listing date, and the exclusivity period for the licencing negotiations also expired at that time. Clarity continues to progress strategic discussions in relation to its pipeline and technology globally and is now clear to negotiate the Greater China territory on a non-exclusive basis.

Clarity’s Executive Chairman, Dr Alan Taylor, commented, "We consider China Grand to be a quality pharmaceutical group who could be a potential future partner. We welcome the interest they have shown in our entire platform, products and technology as well as the opportunity to discuss collaborative opportunities in the Greater China territory. The Clarity Board of Directors is committed to ensuring that any collaborative agreement provides maximum value for Clarity shareholders and reflects the long-term potential returns to all parties.

"Clarity has rapidly expanded its clinical program and manufacturing and supply capabilities in the past 12 months, clearly differentiating itself as an effective and sustainable player in the radiopharmaceutical market, a market that is undergoing rapid growth. The Company is currently recruiting in four clinical trials in the US and Australia with plans to open a number of additional trials across all our products over the next 12 months. This provides a broad range of strategic partnering opportunities globally, which we continue to explore.

"With our continued clinical momentum in a range of products in rare and large indications, it is an exciting time for the Company as we look to create substantial value for shareholders while we progress towards our ultimate goal of better treating children and adults with cancer."

This announcement has been authorised for release by the Executive Chairman.