Rongchang Biotech (688331.SH) and Rongchang Pharmaceutical signed an exclusive global licensing agreement for pan-RAS (ON) small molecule inhibitors

Zhitong Finance App News, Rongchang Biotech (688331.SH) issued an announcement. On November 9, 2026 (after the transaction period), the company signed a “license agreement” with Rongchang Pharmaceutical. Rongchang Pharmaceutical granted the company and its affiliates a global, exclusive, irrevocable license, including licensing fees, for pan-RAS (ON) small molecule inhibitors and any and all products as active pharmaceutical ingredients. The company and its related parties have the right to conduct research, development, registration, production (including commissioned production), commercialization and any other use of licensed compounds and licensed products within the licensed area and licensed field. The company will pay Rongchang Pharmaceutical a one-time and non-refundable down payment of RMB 50 million, a milestone payment of up to RMB 4.87 billion (including development-related payments totaling up to RMB 994 million and sales-related payments totaling up to RMB 3.876 billion), and a royalty fee of 3% to 7% of the annual net sales of the licensed product.

Judging from the company's product pipeline layout, the company's existing tumor product pipeline currently mainly focuses on solid tumor ADCs and bispecific antibodies. The pan-RAS (ON) small molecule inhibitor project introduced this time can complement the existing pipeline, broaden the company's tumor product portfolio, and create opportunities for future joint development with other assets within the company's pipeline. After obtaining the exclusive right to research, develop, register, produce and commercialize the project on a global scale through the “License Agreement”, the company can directly control and manage its global development and commercialization strategies, and reserve subsequent regional licensing and strategic cooperation opportunities. The transaction is not expected to have a significant impact on the company's performance this year. The impact on the company's operating performance for the next year depends on subsequent R&D progress, commercialization, and the triggering of related payment obligations, and there is still uncertainty.