Corporate Alliances

Mundipharma

In February 2006, BioCryst entered into an exclusive, royalty bearing right and license agreement with Mundipharma for the development and commercialization of forodesine HCl, for use in oncology in Europe, Asia, Australia and certain neighboring countries. Under the terms of the agreement, Mundipharma obtained oncology rights to forodesine HCl in the specified territory in exchange for a $10 million up-front payment. Mundipharma will share 50% of the documented out of pocket development costs incurred by BioCryst in respect of current and planned trials as of the effective date of the agreement provided that Mundipharma's maximum contribution to these trials shall be $10 million. In addition, Mundipharma will conduct additional clinical trials at their own cost up to a maximum of $15 million. The license provides for future event payments for achieving specified development, regulatory and commercial events (including certain sales level amounts following a product's launch) for certain indications. In addition, BioCryst will receive royalties based on a percentage of net product sales, which varies depending upon when certain indications receive NDA approval in a major market country and can vary by country depending on the patent coverage or sales of generic compounds in a particular country. Generally, all payments under the agreement are nonrefundable and non-creditable, but they are subject to audit.

For five years, Mundipharma will have a right of first negotiation on existing backup PNP inhibitors BioCryst develops through Phase IIb in oncology, but any new PNP inhibitors will be exempt from this agreement and BioCryst will retain all rights to such compounds. BioCryst retains the rights to forodesine HCl in the United States (U.S.) and Mundipharma is obligated by the terms of the agreement to use commercially reasonable efforts to develop the licensed product in the territory specified by the agreement. The agreement will be governed by a Joint Steering Committee to oversee and review the research and development activities of both parties.

Green Cross

In June 2006, BioCryst and Green Cross entered an agreement to develop and commercialize peramivir in South Korea. Under the terms of this agreement, Green Cross will conduct clinical trials with peramivir in South Korea and will share with BioCryst all data from these studies. While facilitating development of peramivir in South Korea, these trials will also add important data to BioCryst's clinical studies planned for the United States and Europe and those planned in Thailand, Vietnam and Indonesia to be conducted in collaboration with the National Institute of Allergy and Infectious Diseases, and the World Health Organization. As part of the agreement, Green Cross will pay BioCryst a one-time license fee. BioCryst may also receive future event payments as well as substantial double-digit royalties on commercial sales to third parties and BioCryst will equally share in any profits from sales to the Korean government for stockpiling of peramivir. Green Cross will be responsible for all development, regulatory and commercialization costs in Korea. In addition, Green Cross will pay BioCryst a premium over its cost to supply peramivir for development and any future marketing of peramivir products in Korea. BioCryst will share all appropriate peramivir preclinical and clinical data with Green Cross to support their clinical and commercial efforts.

Shionogi & Co. LTD

In March 2007, BioCryst entered into an exclusive license agreement to develop and commercialize peramivir, in Japan for the treatment of seasonal and potentially life-threatening human influenza. Under the terms of the agreement Shionogi will obtain rights to injectable formulations of peramivir in Japan in exchange for a $14 million up-front payment. BioCryst may also receive future clinical event milestone payments (up to $21 million) and commercial event milestone payments (up to $95 million) in addition to double digit (between 10 and 20% range) royalty payments on product sales of peramivir.

BioCryst retains all rights to commercialize peramivir in North America, Europe, and other countries outside of Japan, Tawain and Korea.