Under the terms of the agreement, VectivBio will receive an upfront cash payment of approximately $30 million ($5 million of which is the first installment of Asahi Kasei Pharma's development cost-sharing) and eligibility for up to approximately $170 million in milestone payments if certain development, regulatory and commercial events are achieved. VectivBio is also eligible to receive tiered, double-digit, escalating royalties on sales of apraglutide in Japan. Asahi Kasei Pharma has a right to participate in the development of new indications and lead and fund all development, registration and commercialization activities in Japan. "We are excited to partner with Asahi Kasei Pharma, a leader in the Japanese pharmaceutical industry with a proven history of successful drug development, commercialization and global collaborations. This agreement accelerates the development of apraglutide in Japan, a key market outside our core commercial strategy.