(Yicai) Dec. 5 -- Kelun-Biotech Biopharmaceutical has granted Crescent Biopharma the rights to an antibody-drug conjugate targeted cancer therapy in a deal worth more than USD1.3 billion, while the US firm will license its tetravalent bispecific antibody targeting programmed cell death protein one and vascular endothelial growth factor to the innovative drug development subsidiary of Chinese drugmaker Kelun Pharmaceutical.

Under the agreement, Crescent Bio will make milestone payments of up to USD1.3 billion tied to the development of Kelun-Biotech's investigational SKB105, plus a USD80 million down payment, and pay sales royalties ranging from 5 percent to 15 percent to secure the exclusive global rights to the drug outside the United States, Europe, and China, the Chengdu-based company announced late yesterday.

In addition, Kelun-Biotech will make milestone payments of up to USD30 million, plus a USD20 million down payment, and pay sales royalties of around 5 percent for the exclusive commercialization rights to Crescent Bio's investigational CR-001 in China, it noted.

The two drugs are scheduled to start monotherapy clinical trials in the first quarter of next year, Kelun-Biotech said. The companies will also team up to evaluate the combination therapy of the two candidates in the future, it added.

CR-001 will complement and strengthen Kelun-Biotech's differentiated oncology research and development pipeline, while the licensing of SKB105 will help advance the drug's overseas market development and enhance its revenue potential, the company noted, adding that the collaboration will also expand the firm's global network for new drug development tie-ups.

Kelun-Biotech will accelerate the clinical development of the two new drugs in strict compliance with the highest international standards by leveraging China's abundant clinical resources and efficient execution capabilities, aiming to maximize their global therapeutic potential, it pointed out.

Shares of Kelun-Biotech [HKG: 6990] rose 2.5 percent to HKD460.00 (USD59.10) each in Hong Kong today. Kelun Pharma [SHE: 002422] closed 1.1 percent lower at CNY33.73 (USD4.77) in Shenzhen. In New York, Crescent Bio's stock [NYSE: CBIO] fell 3.1 percent to USD12.99 yesterday.

Editor: Martin Kadiev