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Shares of the Chinese pharmaceutical company increased following news that it has entered into a kidney disease drug discovery partnership with a European pharmaceutical giant, potentially valued at up to $1.8 billion. This move highlights the rising global interest in Chinese biotech innovation.
The company’s stock in Hong Kong closed up 5.8% at HKD7.99 (around $1.02) per share, after earlier gaining as much as 7%. The previous day, the stock surged by 8.3%.
The collaboration aims to jointly identify two therapeutic targets and develop novel small nucleic acid drug candidates aimed at treating various kidney disease conditions. According to an official statement, the preclinical research will leverage proprietary platforms for small interfering RNA (siRNA) drug development and targeted delivery outside the liver. The siRNA platform incorporates advanced AI-driven molecular design and automated high-throughput screening, streamlining the identification and optimization of promising candidates. The delivery platform is designed to transport therapeutics to major organs beyond the liver, supporting the development of next-generation treatments for kidney and other tissue-related diseases.
For each potential drug candidate, the international partner has the option to obtain exclusive rights for development, manufacturing, and global commercialization outside China. The Chinese company will retain rights to develop, manufacture, and sell one of the candidates within China.
Financial details include an upfront payment of $30 million, with potential to earn up to $540 million in development milestones and up to $1.2 billion in sales milestones. Additionally, the company is eligible for tiered royalties of a single-digit percentage on any product that reaches commercialization.
This partnership is anticipated to accelerate the global development and commercialization efforts of the company’s pipeline, as well as reduce the payback period on early R&D investments, ensuring steady financial support for future innovations.
Shares of this biotech firm in Shenzhen climbed 6.4% to CNY36.71 (approximately $5.41), following a more than 12% increase the previous day.
Beyond biological drugs and active pharmaceutical ingredients, this company is also the largest caffeine provider for major beverage brands, including Coca-Cola, PepsiCo, and Red Bull. It has filed for a secondary listing in Hong Kong, as announced by the city’s stock exchange on June 17.
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