Apollomics terminates LaunXP license deal for vebreltinib amid going concern doubt
The oncology company ended its Asia licensing pact with LaunXP after a missed payment, logged a $2.3 million impairment, and warned it may not have enough cash to operate for 12 months.
Apollomics Inc. terminated its licensing agreement with LaunXP International Co., Ltd. effective June 11, 2026, after LaunXP failed to pay the remaining balance of an upfront fee, the company disclosed in a 6-K filed November 6, 2026 covering results for the six months ended June 30, 2026.
The deal, signed in March 2025, covered development and commercialization in parts of Asia of vebreltinib, Apollomics' proprietary c-Met inhibitor, in combination with an EGFR inhibitor for the treatment of non-small cell lung cancer and other tumor types.1 Under its terms, Apollomics was to receive upfront payments totaling $10 million, was eligible for regulatory and other pre-commercial milestone payments of up to $50 million, and royalties on net product sales at a rate of 11%.1
As of June 30, 2026, the Group had received $6.2 million of the upfront payment and had recorded $2.3 million in accounts receivable, but LaunXP failed to remit the remaining $3.8 million balance together with applicable interest and did not cure this failure.1 Apollomics formally terminated the agreement on June 11, 2026, automatically ending all licenses previously granted to LaunXP; LaunXP disagreed with the termination, and on June 18, 2026 Apollomics initiated the contractually mandated dispute resolution process.1 The company recorded a full impairment loss of $2.3 million1 on the receivable, as it does not believe any amount will be recovered under the agreement's terms.
On financial condition, management determined that substantial doubt exists about the company's ability to continue as a going concern, citing cash and cash equivalents of $1.0 million as of June 30, 2026, a history of recurring losses and negative shareholders' equity, and limited liquidity relative to operating requirements.1 Despite cost-reduction initiatives since early 2024, existing cash resources were not sufficient to meet obligations for at least twelve months from the reporting date.1
Subsequent to the quarter, Apollomics closed a $10.0 million private placement on August 14, 2026, combining $8.0 million in cash from new share sales at $15.00 per share with conversion of a $2.0 million related-party convertible note into shares at $12.00 per share, issuing 700,001 Class A ordinary shares in total.1
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