Company: BLRX
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001178913-25-001123
Chunk: 108

Company: BioLineRx Ltd.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 108
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of manufacturing or rights to manufacture based on IIA-funded know-how, requires the consent of the IIA in certain circumstances, and
may result in increased payments to the IIA. Specifically, for the transfer of manufacturing outside of Israel, royalty payments can be
up to three times the amount of the IIA grants received, linked, plus interest, and the royalty repayment rate may increase. For the transfer
of IIA-funded know-how outside of Israel, the payment may be up to six times the amount of the IIA grants, linked, plus interest. In connection
with the IIA’s approval of the out-licensing transactions with Gloria and Ayrmid, the IIA determined that we are required to pay
the IIA 3.9% on any sub-license consideration, up to six times the IIA grant, linked, plus interest. Additionally, in December 2024, we
received IIA approval to transfer the manufacturing of motixafortide outside of Israel, which requires us to pay the IIA 4% of proceeds
on any direct product sales, up to three times the IIA grant, linked plus interest. As of December 31, 2024, $1.1 million in aggregate
royalties had been paid to the IIA on account of the motixafortide program and there was a contingent liability to the IIA (including
interest) of $2.7 million (without taking into account the potential repayment requirement of up to six times the amount as detailed above).
In any event, under our agreement with Biokine, we have a full right of offset for amounts payable to the IIA for the motixafortide program
from any payments that we may owe to Biokine in the future.

Should we wish to further out-license motixafortide in the future,
there is no assurance that we will be able to obtain the IIA’s consent on terms acceptable to us, or at all. Even following the
full repayment of IIA grants, we must nevertheless continue to comply with the requirements of the Research Law. If we fail to comply
with any of the conditions and restrictions imposed by the Research Law and regulations and guidelines thereunder, or by the specific
terms of the IIA grants, we may be required to refund any IIA grants that Biokine previously received together with interest and penalties,
and, in certain circumstances, may be subject to criminal charges. In any event, under our agreement with Biokine