Advised on KRW 600 billion License Agreement for CG Bio's Medical Device
2019.09.23.
Yulchon successfully advised CG Bio Inc. in relation to the client's licensing of its medical device to a Japanese medical device company, Nippon Zoki Pharmaceutical (日本臟器製藥). The medical device at issue is for the implantation of recombinant human bone morphogenetic protein, and was developed by CG Bio based on substantial R&D efforts and investment, including governmental subsidies of approximately USD 3 million.
Yulchon drafted, advised and negotiated the license agreement with the Japanese licensee, which involved reviewing complicated international tax-related issues and carefully developing a strategy for royalty rates that satisfied the client's commercial needs. As a result, the client was able to successfully execute one of the largest outbound pharmaceutical license agreements in Korea to date (the transaction is approximately KRW 600 billion (approx. USD 520 million).
This transaction is expected to provide CG Bio with an opportunity to obtain adequate support from its Japanese licensee in furtherance of the client's global commercialization and new drug development efforts, including expansion into the Chinese market.
Press Coverage:
http://mbn.mk.co.kr/pages/news/newsView.php?category=mbn00009&news_seq_no=3943608 (Korean)
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