(Yicai) Dec. 16 -- Shares of Changchun High-Tech Industry Group advanced after a subsidiary of the Chinese biopharmaceutical company granted the global rights to an innovative hyperthyroidism treatment to US clinical-stage biotechnology firm Yarrow Bioscience for up to USD1.4 billion.

Changchun High-Tech [SHE: 000661] was trading up 3.8 percent at CNY95.57 (USD13.56) as of 2.10 p.m. in Shenzhen today.

Yarrow has received the exclusive global ex-China rights to develop, manufacture, and commercialize GS-098, according to a license agreement signed by Changchun High-Tech, its subsidiary Changchun GeneScience Pharmaceutical, Yarrow, and RTW Investments, a leading healthcare investor backing Yarrow.

GS-098 is a clinical-stage, first-in-class, humanized monoclonal antibody targeting the thyroid-stimulating hormone receptor for the treatment of Graves’ disease and thyroid eye disease. In August last year, it obtained regulatory approval for clinical trials for thyroid-associated orbitopathy in China and the United States. In October, it was approved for clinical trials for GD in China.

GenSci will receive a USD70 million upfront payment, a USD50 million near-term development milestone payment, and additional development, regulatory, and commercial milestone payments for a total deal value of up to USD1.4 billion. Once GS-098 hits the market, GenSci will also get tiered double-digit royalties on sales.

“This landmark partnership with RTW and Yarrow is a strategic step in our vision of becoming a global pharma innovator,” said Lei Jin, founder, general manager, and chief scientist of GenSci and GM of Changchun High-Tech. “GS-098, originated from our Shanghai research and development center, is a first-in-class molecule and has demonstrated the best-in-class potential.”

“This collaboration represents a tremendous opportunity for Yarrow and GenSci to advance GS-098 (YB-101) toward meaningful clinical milestones in both GD and TED,” said Rebecca Frey, president and chief executive officer of Yarrow. “Patients suffering from these debilitating autoimmune conditions continue to face substantial unmet needs.”

“Our partnership with GenSci reflects RTW’s commitment to advancing high-impact science through long-term, collaborative company creation,” said Peter Fong, partner and president of RTW. “We are dedicated to building world-class biotechnology companies, and Yarrow represents a model example of this mission in action.”

New York-based Yarrow is a clinical-stage biotech company focused on developing transformative therapies for autoimmune thyroid diseases. Its lead candidate YB-101 is a humanized monoclonal antibody targeting the TSHR for the treatment of GD and TED. It was founded and incubated by RTW.

RTW, also based in New York, is a global, full-lifecycle investment that focuses on identifying transformative and disruptive innovations in the biopharmaceutical and medical technology sectors.

Editor: Futura Costaglione