OliX Pharmaceuticals' stock price significantly dropped following the termination of a licensing agreement with France's Théa Open Innovation.

As of 2:45 p.m. on June 24, OliX shares were trading at 9,560 won ($6.88), down 17.3 percent from the previous trading day.

The company announced the termination of its technology transfer agreements with Théa Open Innovation for its dry and wet age-related macular degeneration treatment candidate OLX301A and its wet age-related macular degeneration and subretinal fibrosis treatment candidate OLX301D.

OliX signed the initial agreement with Théa in March 2019 for OLX301A, followed by an extension and additional agreements in October 2020 for OLX301D.

The total value of the two contracts is 166.95 million euros ($178.7 million) including a 5.3 million euros upfront payment fee.

OliX also received milestone payments in 2022 and 2023, amounting to 1.33 million euros and 400,000 euros, respectively, bringing the total amount received from Théa to 7.03 million euros. The company stressed that it has no obligation to return this amount.

OliX CEO Lee Dong-ki emphasized in a statement on the company's website that the termination was due to a strategic shift by Théa and did not reflect the efficacy of the treatments.

He reassured stakeholders that OliX's platform technology remains valuable and that the company is committed to demonstrating its worth through further achievements.

"The return of these rights was driven by a change in Théa's business strategy and is unrelated to the clinical efficacy of the ongoing trials," Lee said. "OLX301A has shown safety and preliminary efficacy in its single ascending dose (SAD) phase 1 trial in the U.S., and the U.S. FDA has endorsed moving to phase 2 trials without completing the multiple ascending dose (MAD) phase."

OliX plans to continue the phase 1 clinical trial for OLX301A, aiming to enhance its value. Lee expressed confidence in the company's RNA interference (RNAi) platform technology, which underpins its diverse pipeline of innovative drugs.

"OliX is not limited to ophthalmic treatments because our RNAi platform is the foundation for developing innovative drugs for various diseases," said Lee. "Our GalNAc-asiRNA platform technology, licensed to Jiangsu Hansoh Pharmaceuticals Group, is progressing well for cardiovascular and metabolic diseases."

The company is also in advanced negotiations with several global companies for our MASH and obesity treatment programs and hair loss treatment, Lee added.

Meanwhile, this is the second time that Thea had terminated a licensing agreement with a Korean company.

Thea had previously terminated a licensing deal with Curacle for the latter's retinal vascular disease treatment, CU06, on May 22.