(Yicai Global) July 12 -- BeiGene’s shares fell after the Chinese drugmaker said it has terminated the deal allowing Swiss pharmaceutical giant Novartis to obtain the exclusive rights to its cancer drug in major markets outside of China.

BeiGene [SHA: 688235] finished 3.3 percent down at CNY116.27 (USD16.17) in Shanghai today. In Hong Kong, the stock [HKG: 6160] fell 1.5 percent to HKD114.10 (USD14.57). The company’s New York-listed shares [NASDAQ: BGNE] closed 2.3 percent lower at USD188.06 each yesterday.

BeiGene’s Swiss unit agreed with Novartis to end their joint development of Ociperlimab, a new cancer drug in the pipeline, the Beijing-based firm announced yesterday. The decision was mutual and taken based on strategic and financial factors, it added.

In December 2021, BeiGene granted Novartis exclusive development, manufacturing, and commercialization rights to Ociperlimab in the United States, Canada, Mexico, Japan, and the European Union in a deal that was worth up to USD2.9 billion. Novartis had already paid an upfront payment of USD300 million.

BeiGene will continue to advance phase III clinical trials of Ociperlimab in combination with another monoclonal antibody for the treatment of advanced small cell lung cancer, the firm added, noting that it will terminate the phase III human trials of the drug in another combination regimen.

Ociperlimab is a novel monoclonal antibody drug under development globally. The drug, which has already been licensed, aims to trigger an effective anti-tumor immune response.

Editor: Futura Costaglione