(Yicai) Feb. 24 -- Shares of Frontier Biotechnologies surged after the Chinese drugmaker granted UK pharmaceutical giant GSK the exclusive global rights to two small nucleic acid therapies it is developing in a deal worth more than USD1 billion.

Frontier Biothech [SHA: 688221] surged 7.9 percent to CNY24.38 (USD3.53) a share as of 1.05 p.m. in Shanghai today, after the stock jumped by its daily trading limit of 20 percent at one point.

GSK will receive the rights to develop, produce, and commercialize the two siRNA drugs, Frontier Biothech announced late yesterday, citing a deal the pair signed on Feb. 16, without disclosing what diseases the products target.

Under the deal, GSK will make a USD40 million upfront payment, a USD13 million near-term milestone payment, USD950 million in development, regulatory, and commercialization milestone payments, and pay royalties on global net sales, Frontier Biothech said.

Frontier Biothech will be responsible for advancing the Phase I clinical trial of one of the drugs in China and supporting the research for the investigational new drug application of the other therapy, while GSK will lead the subsequent global clinical development, regulatory submissions, and commercialization efforts for both, the Nanjing-based firm noted. One of the products has entered the IND stage, while the other is in the preclinical stage, it added.

The deal will provide Frontier Biothech with substantial cash flow support to enhance core research and development investments and upgrade its technology platform, while also signifying that its technical expertise in siRNA drugs has gained international recognition, the company pointed out.

Frontier Biothech previously said its net loss likely shrank 1.3 percent to 13 percent to between CNY323 million and CNY288 million (USD46.8 million and USD41.7 million) last year from 2024. Revenue is expected to have jumped 8.1 percent to 12 percent to between CNY140 million and CNY145 million.

Editor: Martin Kadiev