(Yicai) Nov. 5 -- Shares of Sino Biopharmaceutical climbed after it unveiled a licensing agreement with Germany’s Boehringer Ingelheim for experimental cancer treatments that could generate more than USD7 billion in milestone payments for the Chinese drugmaker.

Sino Biopharm [HKG: 1177] closed 9.2 percent higher at HKD5.62 (72 US cents) a share in Hong Kong today.

Under the agreement, Sino Biopharm will undertake six pre-clinical development programs -- five from its unit LaNova Medicines Shanghai and one from its subsidiary Beijing Tide Pharmaceutical -- with the aim of producing next-generation cancer treatments based on antibody-drug conjugate and T-cell engager technologies, the Beijing-based company announced yesterday. 

Upon reaching agreed milestones, Boehringer Ingelheim may exercise options for exclusive development, production, and commercialization rights outside the Chinese mainland, excluding Hong Kong and Macao, for four of the programs, and global rights for the other two, Sino Biopharm added.

Boehringer Ingelheim will make upfront and near-term payments of USD358 million, followed by potential development, regulatory, and commercialization milestone payments and royalties of up to USD7 billion, Sino Biopharm noted.

"Our partnership with SBP Group (Sino Biopharm) brings together complementary science to broaden our development portfolio of antibody-drug conjugates and T-cell engagers," said Paola Casarosa, member of the board of managing directors and head of the innovation unit at Boehringer Ingelheim. "It puts our China strategy into action by connecting innovation from China with our global research and development capabilities.

"Together, we aim to accelerate promising therapeutic approaches and create new treatment possibilities for people living with difficult-to-treat cancers worldwide," she stressed.

Boehringer Ingelheim is expanding its oncology portfolio across cancer cell-directed therapies and immuno-oncology. On Oct. 12, the Ingelheim-based company opened its China R&D Center in Zhangjiang Science City, located in the Shanghai Free Trade Zone, strengthening early clinical development and external innovation capabilities and linking local innovation to its global R&D network.

In 2024, Sino Biopharm and Boehringer Ingelheim penned a deal to jointly develop and commercialize the German firm's oncology pipeline in the Chinese mainland. Zongertinib, one of the drugs under the tie-up, received approval in China for two lung cancer indications, with Sino Biopharm overseeing its commercialization.

"Our second partnership with Boehringer Ingelheim marks an important milestone in SBP Group's international innovation strategy and further validates our scientific capabilities in next-generation oncology," said Theresa Tse, chairwoman of Sino Biopharm. “We will continue to expand our global partner network and contribute high-quality innovation from China to global healthcare.”

Editor: Martin Kadiev