(Yicai) Aug. 6 -- Shares of XtalPi Holdings soared after the artificial intelligence and robotics-powered drug research and development firm said it has penned a deal worth up to USD6 billion with DoveTree to discover and develop small molecule and antibody drug candidates.

XtalPi [HKG: 2228] surged 12 percent to HKD7.39 (94 US cents) a share as of 2 p.m. in Hong Kong today, after jumping by as much as 15 percent at one point.

XtalPi and DoveTree, founded by Harvard University Professor Gregory Verdine, have finalized a deal based on a letter of intent signed on June 23, the Shenzhen-based company announced yesterday. DoveTree will obtain exclusive global rights to therapeutics resulting from the tie-up.

Under the deal, DoveTree will make an upfront payment of USD51 million and an additional USD49 million within 180 days, followed by development and commercial milestone payments plus sale royalties of as much as USD5.9 billion.

"XtalPi will leverage its end-to-end, AI and robotics-driven platform to discover and develop small molecule and antibody drug candidates for multiple DoveTree-selected targets addressing oncology, autoimmune disorders, and neurological diseases," it said on June 23.

"By integrating XtalPi's cutting-edge AI capabilities with decades of drug development expertise, we have a unique opportunity to deliver transformative therapies to patients worldwide," Verdine noted.

Verdine holds the title of Erving Professor of Chemistry at Harvard University, having extensive experience as an academic pioneer and serial biotech entrepreneur. He has founded or co-founded more than ten biotechnology firms, including New York-listed Enanta Pharmaceuticals and Wave Life Sciences, while three Food and Drug Administration-approved therapeutics bear his imprint: romidepsin, paritaprevir, and glecaprevir.

Chinese pharmaceutical companies are increasingly expanding overseas through technology platform alliances rather than just product exports, industry observers pointed out. In June, CSPC Pharmaceutical announced a USD5.3 billion AI drug discovery deal with AstraZeneca.

Established in 2015, XtalPi focuses on drug and materials discovery, combining quantum physics, AI, and robotics to provide smart R&D solutions for the pharmaceutical and materials industries.

Editor: Martin Kadiev