Arbutus and Qilu Pharmaceutical have entered into an exclusive licensing agreement and strategic partnership to develop and commercialize AB-729 in mainland China, Hong Kong, Macau and Taiwan. Under the terms of the licensing agreement, Qilu will be responsible for funding all development and commercialization activities in the aforementioned territories and Arbutus is entitled to receive an upfront payment, development, regulatory and sales milestone payments and royalties on annual net sales. In addition, Arbutus retains the non-exclusive right to develop and manufacture in the Qilu territory for exploiting AB-729 in the rest of the world. This collaboration is intended to bring AB-729 to the largest HBV patient population in need of a cure and tap into one of the largest and most promising healthcare markets worldwide.