Jiangsu Hengrui shares jump on US$500 million drug rights deal with GSK

Shares of China's Jiangsu Hengrui Pharmaceuticals (1276) rocketed 18 percent after announcing it has agreed to license the global rights of its drugs to GlaxoSmithKline Intellectual Property (GSK) for US$500 million (HK$3.9 billion) upfront.

It said on Monday that the transaction includes its HRS-9821 drug and 11 other programs.

The Chinese pharma group said it could earn up to US$12 billion in milestone payments if all options are exercised and targets are met.

HRS-9821 is being developed to treat chronic obstructive pulmonary disease (COPD), while the other projects are in early development across areas such as oncology, respiratory, immunology, and inflammation.

Shanghai shares of Jiangsu Hengrui also climbed 6.6 percent, outperforming the blue-chip CSI 300 Index's 0.1 percent slip and the Hang Seng Index's 0.3 percent gain.

Staff reporter and Reuters