Agreements

The licensed lead structure belongs to a series of novel and highly selective kinase inhibitor compounds that have been developed by LDC in a project funded by the German Federal Ministry of Education and Research (BMBF) and the Max-Planck-Foundation. This project emerged from a collaboration of LDC with research groups from the Westfälische Wilhelms-University of Münster (Prof. Dr. Michael Meisterernst) and the Max-Planck-Institute for Immunobiology and Epigenetics in Freiburg (Dr. Gerhard Mittler).

LDC will receive a significant upfront payment and milestone payments under the terms of the agreement. Milestone payments to LDC may aggregate to 82.5 million Euros in development milestones and 55 million Euros in sales milestones. In addition, LDC is eligible to receive royalty payments on net sales of products once marketed.

* On December 5, 2013, the Lead Discovery Center (LDC) has announced that an innovative kinase inhibitor program licensed to Bayer in 2011, has been progressed to clinical trials. This fall, Bayer enrolled the first participant into a Phase I study to determine the safety, tolerability and pharmacokinetic profile in patients with advanced cancer. This is the first example of a program initiated and developed up to a lead structure stage by the LDC and its academic partners to progress into “First-in-Man” clinical trials. The licensed program included a lead structure from a chemical series of selective kinase inhibitors with potential for improving cancer treatment originally discovered by LDC. This lead structure was further optimized by Bayer scientists to provide a candidate suitable for clinical development. According to the partners’ agreement, the LDC receives an additional predefined payment on achievement of this milestone. The revenues will be shared with the LDC’s academic partners and the Max-Planck-Förderstiftung, which co-funded the early project development. Milestone payments to LDC may aggregate up to 82.5 million Euros in development milestones and up to 55 million Euros in sales milestones. In addition, LDC is eligible to receive royalty payments on net sales of products once marketed.

* On September 20, 2012, the Lead Discovery Center GmbH has announced that an innovative kinase inhibitor program licensed to Bayer Pharma last year, has reached an important transition milestone. Bayer has successfully advanced this kinase inhibitor program into pre-clinical development with the goal of eventually advancing this candidate into oncology clinical development. According to the partners’ agreement, the LDC will receive a predefined payment upon the attainment of this milestone. Milestone payments to LDC may aggregate to € 82.5 million  in development milestones and € 55 million in sales milestones. In addition, LDC is eligible to receive royalty payments on net sales of products once

marketed. The licensed program belongs to a series of novel and highly selective kinase inhibitor compounds that have initially been developed by LDC in a project funded by the German Federal Ministry of Education and Research (BMBF) and the Max-Planck-Förderstiftung. This project emerged from a collaboration of LDC with research groups from the Westfälische Wilhelms-University of Münster (Prof Dr Michael Meisterernst) and the Max-Planck-Institute for Immunobiology and Epigenetics in Freiburg (Dr Gerhard Mittler)