(Yicai) July 28 -- Shares of Hengrui Pharmaceuticals surged after the Chinese firm announced a licensing deal with multinational drugmaker GSK that could bring in as much as USD12 billion by granting global rights to a portfolio of early-stage drug candidates, including one aimed at treating chronic obstructive pulmonary disease.

Jiangsu province-based Hengrui [SHA: 600276] closed up 10 percent at CNY62.04 (USD8.70) in Shanghai today, while its Hong Kong-listed shares [HK: 1276] jumped 24.5 percent to HKD84.75 (USD10.80). The company listed its shares in Hong Kong in May.

Hengrui agreed to transfer exclusive rights outside China to the HRS-9821 project, as well as 11 preclinical innovative drug candidates across therapeutic areas, including oncology, respiratory diseases, autoimmune conditions, and inflammation, to GSK, the Chinese firm said today.

HRS-9821 is a potential best-in-class PDE3/4 inhibitor currently in clinical development for chronic obstructive pulmonary disease (COPD), a common lung illness that restricts airflow and causes breathing difficulties. The drug is intended as an add-on maintenance therapy for a broad range of COPD patients.

The deal includes an upfront payment of USD500 million, which is relatively large compared with Hengrui’s previous 14 out-licensing agreements as the company seeks to expand its revenue streams. Hengrui said the latest partnership will support the international expansion of HRS-9821 and other innovative treatments in its pipeline in areas including oncology.

For the other 11 drug candidates, Hengrui will lead research and development through Phase I clinical trials, including trials involving overseas participants. If all projects reach successful development, registration, and commercialization milestones, the total value of the agreement could reach about USD12 billion. The firm is also entitled to tiered royalties on future sales by GSK outside of China.

Editor: Emmi Laine