Sino Biopharmaceutical Surges Nearly 7% on $1.77B Collaboration Deal with AstraZeneca for Oligonucleotide Therapeutics

Zhitong Finance App learned that CSPC (01093) rose nearly 7% in early trading. As of press time, it was up 6.75%, trading at HK$8.06, with a turnover of HK$167 million.

In corporate news, CSPC announced a collaboration with AstraZeneca on small nucleic acid drugs. Under the agreement, CSPC will receive an upfront payment of $30 million and is entitled to potential R&D milestone payments of up to $540 million, potential sales milestone payments of up to $1.2 billion, as well as single-digit percentage royalties based on the annual net sales of relevant products.

Under the terms of the agreement, CSPC and AstraZeneca will jointly discover and develop preclinical candidate (PCC) drugs targeting two specific targets, with the potential to treat multiple indications in kidney diseases. For each PCC project, AstraZeneca will have the option to obtain exclusive global rights or exclusive rights outside China (as applicable) for development, manufacturing, and commercialization. CSPC will retain full rights for the development, manufacturing, and commercialization of one PCC within China.