On 30 Sep 2020, the Company announced that Dr. Scott Shi-Kau Liu hastendered his resignation from the position as an executive director and the CEOof the Company due to a change in personal business priorities. And Mr. WenjieZhang was appointed as the CEO of Henlius to keep innovating in operationmanagement models and implementing the global strategy.
　　A thoughtful arrangement. Dr. Liu will continue to serve the Company as ahead of the strategic advisory committee of the Company, focusing on thedirections of the Company’s R&D works, the formulation of the Company’sstrategies, and the team construction and development of the Company. Mr.
　　Zhang has more than 25 years of commercial operation and managementexperience in the pharmaceutical industry. Since Mr. Zhang joined Henlius,he has been responsible for the operation management, focusing on buildingthe innovative commercial operation mode and creating an internationalstrategic layout, and successfully promotes the commercialization of HLX02(trastuzumab biosimilar).
　　License and supply arrangement with Accord for HLX02. The Companyhas recently entered into a binding term sheet with Accord Healthcare Inc. togrant a license to Accord to develop and commercialize HLX02 trastuzumabinjection (EU trade name: Zercepac) in the US and Canada. According to theagreement, relevant milestone payments from Accord US to Henlius include:
　　upfront payment of US$27mn, regulatory milestone payments of no more thanUS$13mn and commercial sales milestone payments of US$25mn for everyUS$500mn of cumulative net sales. Henlius will also be eligible to receive atiered royalty from 18% to 50% of future net profit of HLX02. With thiscollaboration, the commercialisation footprint of HLX02 has the potential tocover most of the global mainstream markets of biologics, in our view. A highertiered royalty (18%-50% vs 15%-26.5%) in this agreement than lastcollaboration with Accord in EU reflects the HLX02’s validated quality andefficacy, which may lead to higher-than-expected revenue of HLX02 fromoverseas.