(Yicai) July 10 -- PegBio's shares soared after the Chinese drugmaker said it has signed a three-year project cooperation memorandum of understanding with Nasdaq-listed Rani Therapeutics Holdings on the preclinical development of oral formulations for its novel candidate drugs targeting obesity and metabolic diseases.

After earlier soaring by almost 50 percent, PegBio [HKG: 2565] was trading up 28.8 percent at HKD7.12 (91 US cents) a share as of 2.15 p.m. in Hong Kong today.

PegBio and Rani plan to leverage the proprietary RaniPill oral biologics delivery platform to conduct oral formulation screening and preclinical development for multiple obesity and metabolic disease novel therapeutic candidates from PegBio's pipeline, the Hangzhou-based firm announced today, citing a deal the pair inked on July 8. The two will also perform systematic, platform-wide evaluations of oral delivery development.

The candidate assets include multi-target metabolic regulatory molecules, long-acting platform assets, and other innovative programs, PegBio pointed out. The tie-up aims to advance the most promising candidates into clinical development and explore their joint research, manufacturing, and commercialization in markets outside China, it added.

"The RaniPill platform is uniquely positioned to unlock the full potential of PegBio's molecules by delivering them orally, and we look forward to working together to advance the development of these programs," noted Chief Executive Michael Xu.

"This collaboration with PegBio is an important step in our strategy to broaden and diversify our obesity franchise across multiple mechanisms of action," said Talat Imran, CEO of Rani. "Expanding our collaborations across multiple candidates further reflects our confidence in the versatility of the RaniPill and our commitment to giving patients more oral options.

"PegBio's pipeline is aligned with where we see the greatest unmet need and market potential in obesity," Imran stressed.

Oral dosage forms can improve medication convenience for patients, expand product positioning and applicable scenarios, and boost the global differentiated competitiveness and commercial potential of the candidate assets, PegBio noted.

PegBio focuses on research and development of novel peptide biotherapeutics for chronic metabolic disorders. China approved its self-developed long-acting glucagon-like peptide-1 receptor agonist Vipiglutide Injection last November.

Vipiglutide Injection became PegBio's first commercially approved new drug after being cleared as an indication for glycemic control in adults with type 2 diabetes mellitus. The company has also launched clinical trials for an obesity and weight-loss indication.

Editor: Martin Kadiev