(Yicai) Dec. 5 -- Shares of Kelun-Biotech Biopharmaceutical rose after the innovative biological and small molecule drugs specialist said it had entered into a reciprocal licensing partnership with Crescent Biopharma to develop and commercialize cancer therapies, including novel combinations. The deal could be worth as much as USD1.3 billion to the Chinese firm.

Kelun-Biotech’s shares [HKG: 6990] closed 2.5 percent higher at HKD460 (USD59.09) each in Hong Kong today. The stock has nearly tripled in value since the end of last year.

Kelun-Biotech will grant Crescent Biopharma the exclusive global rights outside China to SKB105, an antibody-drug conjugate targeted cancer therapy, while the US company will license its PD-1/VEGF-targeting tetravalent bispecific antibody to the Chinese partner, the Chengdu-based firm, the holding unit of Kelun Pharmaceutical, said late yesterday.

Under the deal, Crescent Bio will make milestone payments of up to USD1.3 billion tied to the development of SKB105, a USD80 million down payment, and pay royalties ranging from 5 percent to 15 percent to secure the exclusive global rights outside the United States, Europe, and China.

In addition, Kelun-Biotech will make milestone payments of as much as USD30 million, a USD20 million down payment, and pay royalties of around 5 percent for the rights to Crescent Bio's investigational CR-001 drug in China, it noted.

The two drugs are scheduled to start monotherapy clinical trials in the first quarter of next year, Kelun-Biotech said, adding that the partnership also includes the evaluation of CR-001 in combination with SKB105.

CR-001 will complement and strengthen Kelun-Biotech's differentiated oncology research and development pipeline, while the licensing of SKB105 will help advance the drug's overseas market development and enhance its revenue potential, the firm noted. The partnership will also expand the company's global network for new drug development tie-ups, it added.

Kelun-Biotech will accelerate the clinical development of the two new drugs in strict compliance with the highest international standards by leveraging China's abundant clinical resources and efficient execution capabilities, aiming to maximize their global therapeutic potential, it pointed out.

Kelun Pharma’s shares [SHE: 002422] closed down 1.1 percent at CNY33.73 (USD4.77) in Shenzhen today. In New York, Crescent Bio's stock [NYSE: CBIO] fell 3.1 percent to USD12.99 yesterday.

Editor: Martin Kadiev