Select Language:
Shares of the Chinese pharmaceutical company surged following the announcement that it has entered into a deal valued at up to $15.2 billion with a major U.S. pharmaceutical firm to co-develop innovative medications. The Shanghai-listed stock soared by 4.8%, closing at CNY56.11 (about $8.25), after earlier hitting the daily trading limit of 10%. Its Hong Kong-listed counterpart also experienced significant gains, climbing as much as 16.2% before closing up 5.7% at HKD69.40 (approximately $8.86).
Under the agreement, both companies will collaborate on the research, clinical trials, and commercialization of 13 early-stage innovative drugs—specifically, four oncology and hematology drugs from the Chinese firm, four immunology drugs from the U.S. partner, and five other projects scheduled for co-development. The Chinese company will hold exclusive rights to these 13 projects within mainland China, Hong Kong, and Macau, while the U.S. firm will have rights across all other global markets outside China.
The U.S. company will provide an upfront payment of $600 million, followed by an initial annual cooperation fee of $175 million in 2027, and a second conditional annual fee of $175 million in 2028. Additionally, milestone payments will be made based on the progress of joint research, development, registration, and commercialization, potentially totaling up to $15.2 billion.
Once the new drugs are launched, the Chinese company will also be eligible for tiered royalty payments from the global sales outside China, depending on net sales performance. The deal, pending approval from U.S. regulatory authorities and customary closing conditions, is expected to be finalized in the third quarter of this year.
This strategic partnership combines the U.S. firm’s advanced R&D capabilities, extensive clinical development experience, regulatory expertise, and large-scale commercialization strengths with the Chinese company’s efficient early-stage research and strong drug development capabilities. The collaboration aims to accelerate the development of high-value innovative medicines.
ChatGPT
Perplexity
Gemini AI
Grok AI
