FOLOTYN SUPPLY AGREEMENT
Acrotech / CASIFolotyn Supply Agreement
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Exhibit 4.40
Information in this exhibit identified by brackets and *** has been redacted because it is not material and is the type that the Company treats as private or confidential
This FOLOTYN SUPPLY AGREEMENT (this “Agreement”), dated as of July 31, 2023 (the “Effective Date”), is made between Acrotech Biopharma Inc., a State of Delaware corporation (“Acrotech” or “Supplier”), with offices at 000 Xxxxxxxxx-Xxxxxxxxxx Xxxx, Xxxxx 000, Xxxx Xxxxxxx, XX 00000, and CASI Pharmaceuticals, Inc., a Cayman corporation (“CASI” or “Buyer”), with offices at 1701-1702, China Central Office, Tower 0, Xx. 00 Xxxxxxx Xxxx, Xxxxxxxx Xxxxxxxx, Xxxxxxx 000000 Xxxxxx’x Xxxxxxxx xx Xxxxx. Supplier and Buyer are referred to as the “Parties.”
WHEREAS, Mundipharma International Corporation Limited, a Bermuda corporation (“MICL”), and Allos Therapeutics, Inc. (“Allos”) entered into a license, development and commercialization agreement dated as of May 29, 2013, and amended and restated as of May 29, 2013 (the “License Agreement”), pursuant to which MICL has exclusive rights to develop and commercialize certain pharmaceutical Product (including the Product (as defined below)) in the Novated Territory (as defined below);
WHEREAS, pursuant to the completion by Acrotech of its acquisition of the commercialization rights to the Product (as defined below) and the related manufacturing and product development assets, all outstanding agreements exclusively related to the Product (including all rights and obligations of Allos under the License Agreement), were assigned from Allos to Acrotech on or around March 1, 2019;
WHEREAS, pursuant to that certain Assignment Agreement among CASI, Acrotech, and MICL’s affiliate, dated July 31, 2023 (the “Assignment Agreement”), MICL assigned in-part the License Agreement, assigning commercialization rights in China to CASI;
WHEREAS, simultaneously therewith, the Parties agreed to execute the certain Side Letter Agreement Related to Assignment of Folotyn Exclusive Commercialization License, dated May 5, 2023 (the “Side Letter Agreement”), regarding the advance payment and procurement of new API (defined below) for the Product.
WHEREAS, Acrotech has agreed to supply CASI with Product to effectuate the terms of the Assignment Agreement; and
NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Buyer and Supplier agree as follows:
Acrotech / CASIFolotyn Supply Agreement
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1. | Definitions |
1.1. | Definitions. The capitalized terms used in this Agreement shall have the meanings as defined below. |
(b) | “Active Pharmaceutical Ingredient” or “API” means [***] as a mixture of diastereomers. |
(c) | “Business Day” means any day other than a Saturday, Sunday or other day on which banks in the City of New York and/or the City of Beijing are permitted or required to close by any Law. |
(d) | “Buyer” has the meaning set out in the Preamble. |
Acrotech / CASIFolotyn Supply Agreement
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ii. | any information ascertainable by the inspection or analysis of samples; |
iii. | any information disclosed pursuant to the Quality Agreement or the Pharmacovigilance Agreement; and |
(k) | “Drug Approval” means an approval granted by the appropriate Government Entity to market the Product in the Novated Territory. |
(l) | “Existing API” has the meaning set forth in Section 3.1.2. |
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(o) | “Independent Expert” shall have the meaning set forth in Section 7.5. |
(p) | “Intellectual Property” means all intellectual property (whether or not patented), including without limitation, know-how, brands, patents, patent applications, formulae, trade secrets, copyrights, trademarks, trademark applications, trade names, trade dress, trade secrets, industrial designs, designs, concepts, technical information, manuals, standard operating procedures, instructions, specifications, inventions, processes, data, improvements and developments. |
(y) | “Lot” means one (1) full batch of the Product. |
(ff) | “Person” means any individual, partnership, limited liability company, Governmental Entity, firm, corporation, association, trust, unincorporated organization or other entity. |
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(ii) | “Purchase Order” has the meaning set out in Section 4.2. |
(jj) | “Quality Agreement” means the quality agreement which the Parties shall enter into pursuant to Section 6.1. |
(ll) | “Shelf Life” means [***] months. |
(rr) | “Unit” means one (1) unlabeled vial of Product. |
1.2. | Interpretative Provisions. Unless the express context otherwise requires: |
(a) | the words “hereof,” “herein,” “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; |
(b) | the terms defined in the singular have a comparable meaning when used in the plural, and vice versa; |
(c) | the terms “Dollars” and “$” mean United States Dollars; |
(d) | references herein to a specific Annex, Section, Subsection or Schedule shall refer, respectively, to Sections, Subsections or Schedules of this Agreement; |
Acrotech / CASIFolotyn Supply Agreement
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(e) | the terms “day” or “days” refer to calendar days; |
(g) | wherever the word “include,” “includes,” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”; and |
(h) | references herein to any gender includes each other gender. |
2. | Manufacture and Supply |
2.1. | During the Term, Supplier shall procure Manufacture of, and shall supply, the Product to Buyer subject to the ordering procedures set out in this Agreement. |
2.2. | Product shall be delivered to Buyer unlabelled. Buyer is solely responsible for procuring the commercial labeling and packaging of the Product with its own commercial manufacturers. For the avoidance of doubt, Supplier shall not be responsible for arranging, procuring, or facilitating the commercial labeling and packaging for the Product, and Supplier shall not be responsible for reimbursing Buyer for any costs associated therewith. |
2.3. | The supply arrangement between the Parties is exclusive. Buyer is prohibited from engaging a different supplier for Manufacturing and supply services for the Product; provided, however, Supplier is and shall be free to render similar manufacturing and supply services to others. |
3. | Supply Price |
3.1. | Supply Price. |
Acrotech / CASIFolotyn Supply Agreement
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4. | Orders |
Acrotech / CASIFolotyn Supply Agreement
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0. | Delivery |
5.1. | Method of Delivery. |
5.3. | Quantity of Delivery. |
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6.2. | Technical Complaints. Technical complaints associated with Manufacturing of the Product shall follow the process described in the Quality Agreement. |
6.3. | Adverse Drug Experience Information. The Pharmacovigilance Agreement contains provisions relating to adverse drug experiences. |
7. | Acceptance and Refusal Procedures |
7.1. | Buyer shall promptly notify Supplier of any Defective Product in any Delivery of Product, and shall provide Supplier with a detailed written report of the alleged Defect. |
7.2. | Supplier shall use Commercially Reasonable Efforts, at Buyer’s option, to either: |
(a) | replace the Defective Product as soon as reasonably practicable given the nature of the Defect; or |
(b) | refund to Buyer the Supply Price paid to Supplier by Buyer for the Defective Product, or, if the invoice has not been paid, cancel the invoice; and |
(c) | in either case, reimburse Buyer for any amounts paid by Buyer to Supplier for the Delivery of the Defective Product, and costs for removal or disposal of the Defective Product. |
7.3. | Buyer shall, at Supplier’s option, return to Supplier or destroy (and certify destruction of) any Defective Product. |
7.4. | Where applicable, the process set out in the Quality Agreement shall be used in respect of the reporting, management and investigation and handling of Defective Product. |
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8. | Representations, Warranties and Covenants |
8.2. | Supplier represents, warrants and covenants to Buyer that, to Supplier’s knowledge: |
(a) | Supplier is in compliance and shall continue to comply with all applicable Laws. Supplier has and shall continue to have all professional licenses, consents, authorizations, permits, and certificates, and shall have and shall cause its personnel to have completed all registrations or made such notifications as required by Law for its performance of the services under this Agreement; |
(b) | Supplier, or its applicable Affiliate, has good title to the Product supplied to Buyer pursuant to this Agreement and shall pass such title to Buyer free and clear of any security interests, liens, or other encumbrances; and |
(c) | no more than [***] per year, Supplier shall provide Buyer, upon Xxxxx’s reasonable request, with access to all records generated after the Effective Date relating directly to the Manufacture of the Product. |
8.3. | Buyer represents, warrants and covenants to Buyer that, to Xxxxx’s knowledge: |
(a) | Buyer’s warehouse and all equipment utilized in the Distribution and storage of Product hereunder by Xxxxx, or its Affiliate, agents, or subcontractors, shall, during the Term, be maintained in good operating condition, and shall be maintained and operated in accordance with all applicable Laws. The Distribution and storage operations, |
Acrotech / CASIFolotyn Supply Agreement
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procedures and processes utilized in the Distribution of Product hereunder shall be in full compliance with all applicable Laws; |
(b) | Buyer is in compliance and shall continue to comply, and shall cause its Affiliates, agents, and subcontractors to comply, with all applicable Laws. Buyer has and shall continue to have, and shall cause its Affiliates to have, all professional licenses, consents, authorizations, permits, and certificates, and shall have and shall cause its personnel to have completed all registrations or made such notifications as required by Law for Distribution of the Product. |
(c) | Buyer shall provide Supplier with access to (i) all records generated after the Effective Date relating directly to Distribution of the Product and (ii) Buyer’s warehouse and equipment used by Buyer to Distribute the Product (including, where such Distribution is undertaken by a subcontractor, subject to any legal requirement to the contrary, arrange for reasonable access to the subcontractor’s site). |
9. | Indemnification |
9.2. | Buyer Indemnity. Buyer shall defend, indemnify, and hold harmless Supplier, Supplier’s Affiliates, and any of their respective directors, officers, employees, agents, subcontractors, successors, and assigns from any and all Losses for Claims arising out of or relating to Buyer’s, or its Affiliates’, agents’, employees’, or subcontractors’ (a) misuse of the Product after Delivery, including, without limitation, failure to follow storage and temperature guidelines; (b) breach of this Agreement; (c) violation of applicable Law; or (d) willful misconduct, recklessness, or negligence related to the Distribution of the Product; provided, however, the foregoing shall not apply to the extent that the Claim pertains to Supplier’s indemnification obligations above. |
10. | INTELLECTUAL PROPERTy |
Acrotech / CASIFolotyn Supply Agreement
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11. | LIMITATION OF LIABILITY; DAMAGES DISCLAIMER |
12. | Insurance |
13. | TERM and Termination |
Acrotech / CASIFolotyn Supply Agreement
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14. | Confidentiality |
(a) | information that is or becomes generally available to the public or its Representatives (other than as a result of its disclosure by the receiving Party in breach of this Article); |
(b) | information that was available to the receiving Party or its Representatives on a non-confidential basis before disclosure by the disclosing Party; |
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(d) | information that is developed by or for the receiving Party or its Representatives independently of the information disclosed by the disclosing Party. |
provided, that the Party making disclosures to a Third-Party (other than a Governmental Entity) pursuant to Section 14.4 (b) shall ensure that each Third-Party recipient is bound by obligations of confidentiality no less restrictive than those contained in this Agreement and shall be liable to the other Party for any breach of such confidentiality obligations by the relevant recipient.
Acrotech / CASIFolotyn Supply Agreement
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15. | Miscellaneous |
Acrotech / CASIFolotyn Supply Agreement
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if to Supplier:
[***]
if to Buyer, to:
Each such notice, request or other communication shall be given by: (i) hand delivery; (ii) certified mail; (iii) nationally recognized courier service; or (iv) electronic mail. Each such notice, request or communication shall be effective when delivered at the address or electronic address specified in this Section 15.6 (or in accordance with the latest unrevoked direction from the receiving party).
(c) | This Agreement shall be binding upon and inure to the benefit of the Parties, and their respective successors and permitted assigns. |
Acrotech / CASIFolotyn Supply Agreement
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Acrotech / CASIFolotyn Supply Agreement
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IN WITNESS WHEREOF, each Party has caused this Agreement to be executed on its behalf by its officers thereunto duly authorized as of the Effective Date.
ACROTECH BIOPHARMA INC. Date: [***] ______________________ | |
Date: [***]_______________________ | |
Acrotech / CASIFolotyn Supply Agreement
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Supply Price
Product | Volume Threshold Requirement | Unit Price |
Product with Existing API | Units used for Clinical Trial Material | $[***] |
| Units used for Commercial Product | $[***] |
Product with New API | Until [***] Units purchased after Effective Date | $[***] |
| [***] Units purchased from Effective Date | $[***] |