(Yicai) Jan. 13 -- Shares of RemeGen surged by their daily trading limit in Shanghai after the Chinese drugmaker granted US peer AbbVie the exclusive global rights outside of China to an innovative cancer drug it is developing in a deal worth as much as USD5.6 billion.

RemeGen [SHA: 688331] soared 20 percent to CNY114.46 (USD16.41) a share today. Its Hong Kong-listed stock [HKG: 9995] jumped 8.4 percent to HKD100.60 (USD12.90) as of 2.30 p.m.

AbbVie will receive the rights to develop, produce, and commercialize RC148, a novel bispecific antibody drug targeting programmed cell death protein 1 and vascular endothelial growth factor, RemeGen announced late yesterday.

Under the deal, AbbVie will make a USD650 down payment, up to USD4.95 billion in development, regulatory, and commercialization milestone payments, and pay double-digit percentage royalties on annual net sales, RemeGen said.

RC148 can activate the anti-tumor immune response and inhibit tumor-driven angiogenesis, enhancing the anti-tumor activity of the human immune system through multiple mechanisms. The drug is undergoing clinical trials in China on its use in monotherapy and combination therapy for patients with various advanced malignant solid tumors, RemeGen said.

The out-licensing agreement will help accelerate the global development and commercialization of RC148, while enhancing RemeGen's brand value and international influence, the Yantai-based company noted.

Spun off from Abbott Laboratories, AbbVie focuses on developing targeted drugs that can inhibit cancer cell proliferation or boost their apoptosis. It allies with innovative drugmakers to accelerate the development and implementation of potential breakthrough therapies.

Editor: Martin Kadiev