(Yicai Global) Oct. 20 -- Huadong Medicine’s shares rallied after the Chinese drugmaker said it plans to spend as much as USD305 million for the exclusive rights in China to market ImmunoGen's new ovarian cancer treatment.

Huadong [SHE: 000963] ended 4.4 percent higher at CNY26.64 (USD3.99), after jumping as much as 5.3 percent earlier in the day.

A unit has signed a deal with a subsidiary of Massachusetts-based ImmunoGen to test and sell Mirvetuximab Soravtansine in China, including the mainland, Hong Kong, Macau, and Taiwan, the Hangzhou-based company said in a statement this morning.

The drug, which treats cancer that begins in the ovaries, is in stage three clinical trials in the United States and is expected to be given a US sales go-ahead in 2022, Huadong said. 

The Chinese company said it plans to submit an application early next year to test the medicine in China. It will pay commissions to ImmunoGen once the drug is on the market.

Editor: Emmi Laine