Company: APM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001213900-25-037669
Chunk: 115

Company: Aptorum Group Ltd
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 115
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With the positive feedback
on the overall development strategy from the US FDA, we may proceed towards the IND submission of ALS-4 seeking to initiate a Phase 2
clinical study to assess the efficacy of ALS-4 in patients in 2025.

Patent License

On October 18, 2017, the Company’s
subsidiary, Acticule, entered into an exclusive license agreement with Versitech Limited, the licensing entity of HKU, for ALS-4. Subsequently
on June 7, 2018, the parties entered into a first amendment to the exclusive license agreement, and on July 10, 2019, the parties
entered into a second amendment to the license agreement.

On January 11, 2019, Acticule
and Versitech Limited entered into a second license agreement for ALS-4, where Acticule exclusively licensed the intellectual property
rights on certain HKU-owned improvements to the original licensed invention.

Under the exclusive license
agreements, we were granted an exclusive, royalty-bearing, sublicensable licenses to develop, make, have made, use, sell, offer for sale
and import products that are covered by the licensed patents (as described below). The territory of the licenses is worldwide and the
field of the licenses is for treatment or prevention of bacterial infections caused by Staphylococcus aureus including MRSA and bacterial
virulence.

We paid an upfront fee upon
entering into the license agreements. We are required to pay less than 10% of the net sales of the licensed products sold by us or our
affiliates as royalties, as well as a low teens percentage of sublicense royalties that we receive from our sublicensees, if any. In addition,
we agreed to pay to the licensor aggregate regulatory milestones of up to US$1 million subject to the following achievements: submission
of investigational new drug application; completion of phase 1, 2 and 3 clinical trials; and submission of new drug application; grant
of regulatory approval. We also agreed to pay to the licensor aggregate sales milestones of up to US$7.8 million subject to the following
achievement: first commercial sale; and annual net sales exceeding US$100 million in one jurisdiction.

Pursuant to the license agreements,
Acticule became the exclusive licensee of 2 pending U. S. non-provisional patent applications and 2 PCT applications (now expired). Prior
to the expiration of the PCT