(Yicai) Oct. 22 -- Innovent Biologics has granted Japan's Takeda Pharmaceutical the rights to three cancer drugs in the pipeline in a record out-licensing agreement for a Chinese biopharmaceutical company worth up to USD11.4 billion.

Innovent and Takeda will co-develop IBI363, a next-generation immuno-oncology therapy in Phase III clinical trials, and co-commercialize it in the United States, the Suzhou-based firm announced today. Takeda will lead the joint development and commercialization in the US, while holding the exclusive rights outside China and the US, it added.

In addition, Innovent will grant Takeda exclusive rights outside China to IBI343, an antibody-drug conjugate also in Phase III clinical trials, and an exclusive option for the rights to IBI3001, a bispecific ADC in Phase I clinical trials, the Chinese company noted.

Under the deal, Takeda will make an upfront payment of USD1.2 billion, including a strategic equity investment of USD100 million at a premium, followed by potential milestone payments and royalties for a total of up to USD11.4 billion, Innovent pointed out.

"We believe that developing innovative IO and ADC will be a key direction for redefining cancer treatment worldwide," said Zhou Hui, chief research and development officer for the oncology pipeline at Innovent. Takeda's extensive experience and strong development and commercialization capabilities will help deliver the three promising drugs to patients worldwide as soon as possible, Zhou added.

China's innovative pharma industry has seen explosive growth in global expansion since the start of this year, with the value of penned out-licensing agreements surging 129 percent to USD60 billion in the six months ended June 30 from a year earlier, surpassing last year's total, according to data from global drug data platform Pharmcube.

Established in 2011, Innovent offers 16 products that cover oncology, autoimmune diseases, metabolic disorders, and other areas. Its first-half net profit was CNY834 million (USD117 million), compared with a loss of CNY393 million a year ago, while its revenue jumped 51 percent to CNY6 billion (USD840 million), it said in its latest financial report.

Innovent [HKG: 1801] closed down 2 percent at HKD85.20 (USD10.96) a share in Hong Kong today, despite opening up 9.9 percent. The benchmark Hang Seng Index fell 0.9 percent.

Editor: Martin Kadiev