Company: BLRX
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001178913-25-001123
Chunk: 48

Company: BioLineRx Ltd.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 48
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, to satisfy specified conditions in order to
transfer the manufacture of products and transfer technologies outside of Israel and to make additional payments in addition to repayment
of the grants.

Before we in-licensed motixafortide, Biokine had received $2.7
million in funding for the project from the Israel Innovation Authority, or the IIA (formerly the Office of the Chief Scientist of Israel’s
Ministry of Economy and Industry, or the OCS). As a condition for the IIA’s consent to our in-licensing of motixafortide,
we were required to agree to abide by any obligations resulting from such funding under the Israeli Encouragement of Industrial Research,
Development and Technological Innovation Law, 1984, and related regulations, as amended (the Research Law). Under the Research Law
and the terms of IIA grants, royalties on the revenues derived from sales of products (and associated services) developed with IIA funding
are payable to the Israeli government, generally at the rate of 3% (and at an increased rate under certain circumstances, as described
below). The obligation to make these royalty payments terminates upon repayment of the amount of grants, linked to the U. S. dollar, plus
interest (in accordance with IIA regulations), which amount may be increased under certain circumstances, as described below.

Under the Research Law, the transfer or license to third parties outside of Israel of
know-how or technologies developed under IIA-funded programs, or the transfer to third parties outside of Israel 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