(Yicai Global) July 11 -- Chinese biotech company BeiGene said it received the global development and commercialization rights for a new oncology drug, a therapeutic used to treat cancer.

BeiGene secured an exclusive option and licensing agreement with its Shanghai-based peer Duality Biologics, it announced yesterday. The deal gives it the global rights to develop and market a potential antibody-drug conjugate that targets certain solid tumors, it noted, adding that the ADC is in a preclinical stage.

Solid tumors grow in organs, including the lungs, pancreas, liver, stomach, intestine, and other parts of the digestive tract, and can be either benign or malignant.

DualityBio will receive a down payment and an optional one if BeiGene uses the option, the latter said without disclosing the amount. It will also earn up to USD1.3 billion in extra fees and tiered royalties depending if the project hits specific research and development, regulatory and commercial targets.

If BeiGene exercises the option, it will gain the global rights to develop, produce, and sell the drug, while DualityBio will carry out all preclinical studies before filing an investigational new drug application and assisting BeiGene with future IND submissions, the Beijing-based firm pointed out.

Founded in 2020, DualityBio develops next-generation ADCs therapeutics for patients with cancer and autoimmune diseases, according to its website. It has established several next-generation ADC technology platforms with global intellectual property rights.

BeiGene [SHA: 688235] rose 0.6 percent to CNY119.80 (USD16.62) a share in Shanghai as of lunch break today, while its Hong Kong-traded stock [HKG: 6160] climbed 1.4 percent to HKD116 (USD14.82). Its New York-listed shares [NASDAQ: BGNE] closed 1.6 percent higher at USD192.53 yesterday.

Editor: Martin Kadiev