(Yicai Global) Feb. 28 -- Shares in Heidelberg Pharma surged as much as 55 percent today after Chinese drugmaker Huadong Medicine said that it will buy the second-largest stake in the German cancer medicine developer and license two of its experimental drugs.

Heidelberg Pharma’s stock price [DE:HPHA] was trading up 50.49 percent at EUR6.20 (USD7) as of 10 a.m. Central European Time today. Earlier in the day it had hit EUR6.40. Huadong Medicine’s share price [SHE:000963], meanwhile, closed down 0.21 percent at CNY37.89 (USD6).

A Hong Kong unit will pay EUR105 million (USD118 million) for a 35 percent stake in Ladenburg-based Heidelberg Pharma, the Hangzhou-based Huadong Medicine said today.

The company also plans to spend no more than USD449 million in milestone payments to acquire the exclusive development and commercialization rights to two of the German firm’s experimental therapies for myeloma and prostate cancer in 20 Asian countries and regions, it said.

It is the second overseas investment announced by the Chinese drugmaker in less than a week, following a USD640 million investment in the US’ Kiniksa Pharmaceuticals for the exclusive rights to develop and commercialize two first-in-class rare disease drugs in the Asia-Pacific region.

Becoming Heidelberg Pharma’s second-largest shareholder will help enhance the company’s tumor drug production, improve research and development capabilities and form a unique global R&D ecosystem for these products, Huadong Medicine said.

Editor: Kim Taylor