(Yicai Global) Feb. 2 -- Shares of Junshi Biosciences advanced after the Chinese drugmaker granted Coherus Biosciences exclusive rights to commercialize an experimental cancer immunotherapy in North America in a deal that could be worth as much as USD1.11 billion.

After climbing as much as 9 percent in Shanghai today, Junshi Biosciences [SHA: 688180] closed up 3.8 percent at CNY94.59 (USD14.66). Its Hong Kong-listed stock [HKG: 1877] added 9.6 percent to HKD89.85 (USD11.59), retreating a little from an earlier 11.6 percent increase.

Junshi and Coherus, a US copycat maker of biologic drugs, will co-develop the monoclonal antibody drug teriplizumab that is used to treat malignant melanomas and other cancers, while Coherus will have its commercial rights in North America, the Shanghai-based company said in a statement yesterday.

Junshi will also give Coherus the right of first negotiation to two early-stage checkpoint inhibitor antibodies under development, one of which has already been approved for clinical trials in China and the US, it added.

Should all three medicines be licensed to Coherus, Junshi could reap USD1.11 billion. Coherus will pay an upfront, non-refundable downpayment of USD150 million, according to the terms of the agreement. Junshi could also receive a further USD380 million if certain development and sales goals are met. Coherus will also pay exercise fees and milestone payments at each stage of the projects in development, as well as annual expenses on research and development.

The two firms plan to apply to the US Food and Drug Administration to use teriplizumab in the treatment of a variety of rare and common cancers including non-small-cell lung cancer, the statement said.

Coherus Biosciences [NASDAQ: CHRS] closed 6.4 percent lower yesterday at USD17.60.

Editor: Kim Taylor