(Yicai) June 23 -- Shares of Haisco Pharmaceutical Group jumped after the drugmaker licensed two innovative drugs to Nasdaq-listed Nuvectis Pharma in a deal worth as much as USD1.4 billion, making it the Chinese firm's second major overseas agreement this month.

Haisco [SHE: 002653] ended 8 percent higher at CNY53.21 (USD7.85) per share today. The broader Shenzhen market fell 3.2 percent.

Nuvectis will receive exclusive rights to develop, produce, and commercialize HSK42360, a BRAF inhibitor, outside China, and HSK39297, a complement factor B inhibitor, outside China, Southeast Asia, and India, Chengdu-based Haisco announced today.

The agreement will take effect once Nuvectis completes its next fundraiser, after which it will pay USD40 million in upfront and near-term milestone payments, followed by as much as USD1.4 billion in additional development and commercialization milestones, as well as tiered royalties reaching the low double digits on future sales, Haisco said.

“The in-licensing of the two clinical-stage drug candidates with best-in-class potential represents an expansion of Nuvectis' pipeline and strategy," said Chairman and Chief Executive Ron Bentsur.

The agreement is Haisco’s second overseas deal this month. On June 1, the firm said it will carry out drug-discovery and early-stage development work on as many as five target innovative drug projects selected by the US’ Eli Lilly, while retaining exclusive rights to some projects in China. That partnership could generate more than USD3 billion in upfront and milestone payments, in addition to potential royalties, it added.

Nuvectis' first four milestone payments may be settled using the common stock of the New Jersey-based biotech firm, although any equity consideration must not exceed 40 percent of the total milestone value, Haisco said, adding that it will also be entitled to a share of any proceeds should Nuvectis subsequently sublicense the rights to a third party.

HSK42360, also known as NXP200, is an oral, brain-penetrant paradox-breaker BRAF inhibitor in Phase I clinical trials. The treatment is designed to overcome acquired drug resistance associated with first-generation BRAF therapies and has demonstrated promising potential in studies involving primary brain tumors and brain metastases thanks to its excellent penetration of the central nervous system.

HSK39297, aka NXP100, is a small-molecule complement factor B inhibitor being developed for diseases driven by abnormal complement activation. Haisco has already filed a marketing application in China for paroxysmal nocturnal hemoglobinuria and is conducting Phase II studies in lupus nephritis and Phase III trials in primary Immunoglobulin A nephropathy, the company said.

Editor: Martin Kadiev