According to Zhitong Finance App, Corning Jerry Pharmaceutical-B (09966) announced that on August 3, 2026, Jiangsu Corning Jerry Biopharmaceutical Co., Ltd. (Jiangsu Corning Jerry), a wholly-owned subsidiary of the Company, and Pathos AI, Inc. (Pathos AI) signed a license agreement (license agreement) for JSKN016. Jiangsu Corning Jerry granted an exclusive license to Pathos AI to research, develop, manufacture and commercialize JSKN016 in mainland China, Hong Kong, Macau, and regions other than Taiwan.
According to the license agreement, Jiangsu Corning Jerry has the right to collect an irrefundable down payment of US$125 million and additional milestone payments from Pathos AI, up to a total of US$2,093 million, but the amount depends on the achievement of certain development and commercialization milestones; and a tiered royalty fee calculated based on the total annual net sales in the licensed area, calculated at a ratio of high to low double digit percentages. Jiangsu Corning Jerry reserves all and exclusive rights to develop, manufacture and commercialize JSKN016 in mainland China, Hong Kong, Macau, and Taiwan. Pathos AI will be responsible for the costs and expenses of developing and commercializing licensed products within the licensed region.
As part of the overall transaction, Pathos AI granted the Group a share warrant (share warrant), and the Group has the right to subscribe for Pathos AI's preferred shares at the applicable issue price per share, with a total subscription price of US$62.5 million (subject to adjustment in accordance with the terms of the overall transaction). The Group has full discretion as to whether or not to exercise a share warrant. Should the Group choose to exercise a share warrant, the relevant investment arrangements and documents will be separately signed and disclosed.
The Company believes that this cooperation will enable the Group to utilize Pathos' AI's capabilities in precision medicine, artificial intelligence (AI) -driven drug development and clinical oncology development to advance the global development and commercialization of JSKN016, while retaining the Group's exclusive rights in mainland China, Hong Kong, Macau and Taiwan. Down payments, milestone payments and royalties provide the Group with an opportunity to realize the value of JSKN016 as overseas development and commercialization progresses. The Board of Directors believes that the license agreement and grant of warrants are based on general commercial terms, are fair and reasonable, and conform to the overall interests of the Company and shareholders.