(Yicai) Nov. 5 -- Shares of Hinova Pharmaceuticals rose after the Chinese innovative drugmaker granted Evommune and its subsidiary the exclusive global rights, excluding China, to its vav guanine nucleotide exchange factor 1 molecular glue degrader in a deal worth as much as USD1.1 billion.

Hinova [SHA: 688302] closed 7.3 percent higher at CNY35.49 (USD5.32) a share in Shanghai today, after surging by as much as 14.8 percent at one point.

Evommune and EvommuneMGD have obtained the exclusive rights to develop and commercialize HP570 outside of China, Hinova announced today, citing a deal signed yesterday. The orally available VAV1 molecular glue degrader, developed using the Chengdu-based firm's targeted protein degradation technology platform, can highly selectively inhibit abnormal immune activation and, based on preclinical studies, treat a range of autoimmune diseases, it added.

Under the deal, Hinova and its Hong Kong unit will receive non-refundable and non-creditable upfront payments of USD30 million, with USD20 million in cash and USD10 million in warrants issued by Nasdaq-listed Evommune, the Chinese firm noted, adding that it will also get potential development, registration, and commercialization milestones of up to USD1.07 billion, as well as tiered royalties.

If EvommuneMGD sublicenses the investigational drug to a third party, Hinova will also be entitled to a share of the income, it pointed out.

In a separate announcement late yesterday, Hinova said the US Food and Drug Administration has approved the investigational new drug application for HP570 to treat rheumatoid arthritis, with a Phase I clinical trial set to begin soon. The IND application in China is still under review.

California-based Evommune focuses on developing innovative therapies for chronic inflammatory diseases and is committed to reducing the long-term health effects of persistent inflammation and improving patients' quality of life by advancing a differentiated research and development pipeline.

Editor: Martin Kadiev