Aurealis Therapeutics and Xbiome Enter into a License and Collaboration Agreement for Aurealis Four-in-One Diabetic Foot Ulcer and Inflammatory Disease Cell and Gene Therapy AUP-16 in Greater China

Aurealis Therapeutics, a synthetic biology company developing groundbreaking four-in-one cell and gene therapies and Xbiome, an AI-based microbiome drug development company, announced that the two companies have entered into an exclusive license and collaboration agreement for the clinical development and commercialization of Aurealis investigational Diabetic Foot Ulcer (DFU), other chronic wounds, and inflammatory disease therapy AUP-16 in Greater China. Shanghai-based Lynx Financial served as Aurealis’ exclusive financial advisor in this transaction.

Under the terms of the license and collaboration agreement, Xbiome acquires exclusive development and commercial rights for all human use to Aurealis clinical stage DFU drug candidate AUP-16 in Mainland China, Hong Kong, Macao, and Taiwan. Xbiome will be responsible for all clinical and other development, regulatory submissions, and commercialization of the licensed products in the licensed territory. Aurealis retains full rights to AUP-16 outside of the specified territory and will continue to lead the global development of the drug candidate. The companies will collaborate on the joint development for DFU and potentially on other selected indications. As a consideration for the agreement, Aurealis will receive an upfront payment, development milestone payments, and is eligible to receive commercial milestone payments and royalties on product sales, which all taken together could amount to a total consideration of $139 million plus single to double digit ascending royalties on product sales.

“We are extremely happy to partner with Xbiome. We are impressed of their expertise, agility in execution, and commitment to the treatment of diabetes-related diseases and introducing the world’s leading AI microbiome-based treatment methods and drugs into the China market and beyond, of which AUP-16 will be a great example. We believe that this partnership will accelerate the development of AUP-16 as a potential new therapy for DFU and other chronic wound patients.” said Juha Yrj nheikki, Aurealis CEO.

“At Aurealis we develop truly novel GMO cell and gene therapies to improve the lives of millions of patients worldwide. DFUs and other chronic wounds not only cause great pain, but also enormous costs to the society. We are very excited to collaborate with Xbiome and work together to develop a unique cure for these conditions with rapidly growing prevalence in China and around the world. We are honored to embark on this journey together with our colleagues at Xbiome.” continued Roger Meier, Aurealis Chairman of the Board.

Yan Tan, founder and CEO of Xbiome commented, “At Xbiome, we are building a rich and innovative pipeline of products based on our microbiome-based drug development platform. AUP-16 and the underlying novel GMO cell and gene therapy technologies fit perfectly with our platform and longterm strategy. Aurealis is one of the most innovative biotech companies we came across all over the world and most importantly we share the same vision and passion. We are extremely excited to collaborate with Aurealis to bring AUP-16 to DFU and other chronic wound patients in China. This joint effort will accelerate the development of AUP-16 in China and all over the world. It is just the beginning of a long-term partnership of two companies, we are thrilled to embark this journey and explore more possibilities in the future.”

Donald Xu, Managing Partner of Lynx Financial added: “We are witnessing here two young and rising companies join forces to develop a first- and best-in-class therapy for these debilitating chronic wound indications. This synergistic collaboration between a Chinese and a European company truly underscores the global trend in innovation and development within the pharmaceutical and biotech industries.”