Innovent shares rise 10% after pact with Pfizer of up to $10.5 billion
Two employees in the pharmaceutical industry wearing protective gloves, masks, caps and white clothes are seen standing next to the machine that is part of the production of medicines during working hours in a pharmaceutical factory.
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Shares of Innovent Biologics rose 10% after the company struck a deal with pharmaceutical giant Pfizer to develop oncology drugs.
The company said the partnership, which includes licensing, co-development and co-commercialization opportunities across a diverse portfolio of antibody-drug conjugates, will encompass the research and development of 12 groundbreaking early-stage and new cancer drugs. filing.
Innovent will develop four global programs, sharing costs with Pfizer. In addition, the Hong Kong-listed biotech company will co-commercialize and share profits with Pfizer in the US and Europe, although Innovent will retain the rights to these programs in the Greater China market.
Innovent will receive an upfront payment of $650 million and will be eligible to receive up to $9.85 billion in development, regulatory and commercial milestone payments, which will bring the total value of the deal to $10.5 billion.
“Additionally, Innovent will receive double-digit royalties from sales of each product if approved,” the company said, adding that completion of the transaction is subject to regulatory approvals.
Partnerships between biotech firms and pharmaceutical companies are coming into focus amid concerns about the rise of oncology-related diseases globally.
“Big pharma companies, in particular, have used licensing as a surgical tool to address near-term pipeline gaps ahead of the “2026-2030 patent cliff.” report By Gibson Dunn.
Innovent shares rose 6.41% to HK$79.65.
