Form 8-K for LION BIOTECHNOLOGIES, INC.
Entry into a Material Definitive Agreement
The Company and WuXi AppTec may, from time to time during the term of the Agreement, enter into individual statements of work, which statements of work will describe the services to be performed by WuXi AppTec thereunder, the consideration to be paid by the Company for such services, and other details related thereto. The Company and WuXi AppTec have entered into two such statements of work for two cGMP manufacturing suites to be established and operated by WuXi AppTec for the Company, one of which is expected to be capable of being used for the commercial manufacture of the Company’s products. The fee payable under the first statement of work for the use of one of the manufacturing suites during the next year, including the fees for the necessary personnel, will be $2.5 million. Under the second statement of work, WuXi AppTec agreed to establish and operate a second, dedicated facility for a late stage / commercial manufacturing cGMP suite. Under the second statement of work, the Company agreed to transfer its current tumor infiltrating lymphocyte manufacturing process to the dedicated cGMP cell processing suite to be established at WuXi AppTec’s facilities. The fee payable under the second statement of work for the use of one of the manufacturing suites during the next year, including the fees for the necessary personnel, will be $5.85 million. Equipment for this suite will be also be purchased in addition to these amounts. Under the two statements of work, the Company will pay WuXi AppTec additional fees based on the amount of testing, analysis, raw materials purchased and manufacturing/production services provided by WuXi AppTec.
The Agreement has a three-year term. However, the Company may terminate the Agreement or any statement of work by providing written notice of termination not less than 30 days in advance of the date of termination; provided, that the Company shall remain liable for any fees owed under any outstanding statement of work, including termination fees. WuXi AppTec may terminate the Agreement by providing written notice of termination not less than 180 days in advance of the date of termination; provided, that, the Agreement shall remain in full force and effect with respect to any statements of work outstanding at the time that such termination becomes effective.