The board of directors of TOT BIOPHARM International Company Limited announced that, based on a comprehensive and prudent analysis and evaluation of the future commercial value and market sales of TAA013, the Group's self-developed HER2 targeted antibody-drug conjugate ("ADC"), and taking into account the Company's strategic planning, the Group has decided to terminate the Phase III clinical trial study and development of TAA013 in China. TAA013 is an ADC drug composed of a recombinant humanized anti-HER2 monoclonal antibody covalently linked to the microtubule inhibitor DM1 via the linker SMCC. It is proposed to be mainly used for treating unresectable locally advanced or metastatic HER2-positive breast cancer after failure of trastuzumab therapy.

The drug is currently undergoing Phase III clinical study to evaluate the efficacy and safety of TAA013 as compared to lapatinib plus capecitabine in the treatment of patients with unresectable locally advanced or metastatic HER2-positive breast cancer after failure of trastuzumab therapy. With the recent significant changes in the current market competitive landscape of ADC drugs for the treatment of HER2-positive breast cancer, after the comprehensive evaluation by the Company's management, it is believed that the future market sales and potential commercial value of TAA013 among products in the same field will be far lower than the market expectations under the Company's early planning. Taking into account the Company's strategic transformation, in addition to better allocating its resources to the research and development of its existing product pipelines as well as sales of its launched products, the Company will also continue to vigorously develop its CDMO business involving ADCs and antibody drugs.

After consideration by the Board, the Group has decided to terminate the further development of the drug, and this will not have any significant impact on the Group's subsequent financial conditions. The Board is of the view that this decision demonstrates the Company's determination to focus on the development of its key businesses, is in line with the Company's overall strategy, and can safeguard the interests of the Company and its shareholders as a whole. Upon the termination of Phase III clinical trial of TAA013, based on the disease progression and drug availability in respect of certain subjects who remain in the trial, and taking into account the judgment of researchers and the wishes of those subjects, the Group will decide on the provision of appropriate treatment options for those subjects.