| Item 1.01 | Entry into a Material Definitive Agreement. |
On April 26, 2021, LogicBio Therapeutics, Inc. (“LogicBio” or the “Company”) and CANbridge Care Pharma Hong Kong Limited (“CANbridge”) entered into an Exclusive Research Collaboration, License and Option Agreement (the “Agreement”), pursuant to which LogicBio granted CANbridge (a) an exclusive worldwide license to the adeno-associated virus sL65, the first capsid produced from LogicBio’s proprietary sAAVyTM platform, to develop and commercialize gene therapy candidates for the treatment of Fabry and Pompe diseases, (b) an option to obtain an exclusive worldwide license under such intellectual property rights to develop and commercialize gene therapy candidates for the treatment of two additional indications and (c) an exclusive option to obtain an exclusive license under certain of LogicBio’s intellectual property rights to develop and commercialize the Company’s investigational treatment for methylmalonic acidemia based on its proprietary gene insertion platform, GeneRideTM, LB-001 in Greater China (China, Taiwan, Hong Kong and Macau).
Pursuant to the Agreement, LogicBio and CANbridge will collaborate to develop the gene therapy candidates referenced in (a) above for the treatment of Fabry and Pompe diseases plus, upon CANbridge’s exercise of the applicable option, two optional indications under a mutually agreed research plan. CANbridge agreed to provide funding for LogicBio’s activities under the research plan in accordance with a mutually agreed research budget.
Unless earlier terminated, the Agreement will continue, on a product-by-product basis and country-by-country basis, until the expiration of the royalty period applicable to such product and such country. Either party may terminate the Agreement for uncured material breach, provided that if the material breach pertains solely to LB-001 or a single gene target, then the termination will be limited to LB-001 or such target. Either party may also terminate the Agreement for insolvency of the other party. In addition, CANbridge may terminate the Agreement for convenience, subject to a notice period, and LogicBio also has certain other customary termination rights.
Under the Agreement, LogicBio will receive an upfront payment of $10.0 million. LogicBio is also entitled to receive reimbursement for research expenses under the Agreement in accordance with a mutually agreed research budget. In addition, LogicBio is eligible to receive option exercise payments, and clinical, regulatory and commercial milestone payments of up to $581.0 million. LogicBio is also eligible to receive tiered royalties at percentage rates ranging from mid single digits to low double digits.
The foregoing summary of the Agreement does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the Agreement, a copy of which the Company plans to file, with confidential terms redacted, with the U.S. Securities and Exchange Commission as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021.
