(Yicai) Sept. 3 -- Hutchmed China’s shares surged after the innovative drugmaker said it signed a deal worth more than USD1.4 billion to license its early-stage first-in-class cancer therapy to global pharmaceutical giant GlaxoSmithKline.

Hutchmed [HKG: 0013] was trading up 15.6 percent at HKD22.12 (USD3.29) as of 3.05 p.m. in Hong Kong today.

Hutchmed has granted GSK exclusive rights outside the Chinese mainland, Hong Kong, Macao, and Taiwan to develop and commercialize HMPL-A830, a first-in-class drug candidate for patients with Kristen rat sarcoma-altered colorectal, lung, and pancreatic tumors, the Hong Kong-based company announced today.

GSK will pay Hutchmed a USD110 million upfront payment and up to USD1.3 billion in potential development, regulatory, and commercial milestone payments, plus royalties on net sales.

Under the deal, Hutchmed will be responsible for the global Phase I development program, which is expected to start by the end of the year, with GSK taking charge of all subsequent clinical development and commercialization activities outside the Chinese mainland, Hong Kong, Macao, and Taiwan.

“Our ATTCs combine antibodies with our proprietary small-molecule inhibitor payloads to deliver dual mechanisms of action,” said Johnny Cheng, active chief executive officer and chief financial officer of Hutchmed. “HMPL-A830 is our third drug candidate from these novel payload platforms and the first from our platform to be licensed to a global partner, following two candidates that have entered clinical development.”

“This collaboration marks a significant step in maximizing its potential as a treatment for patients, unlocking an entirely new class of precision oncology medicines,” Cheng added.

HMPL-A830 is an antibody-targeted therapy conjugate that comprises a highly selective and potential KRAS small-molecule inhibitor payload conjugated to an anti-epidermal growth factor receptor antibody, Hutchmed explained. ATTCs enable tumor-selective activity of potent, cell-killing payloads by leveraging antibody-guided therapy.

Colorectal, lung, and pancreatic cancers have the highest incidence of patients with KRAS-altered tumors, who often lack a safe and durable KRAS therapy, Hutchmed noted, adding that HMPL-A830 is designed to address this need by delivering a KRAS inhibitor directly to EGFR-expressing tumors, while simultaneously blocking EGFR and KRAS signaling to enhance efficacy, durability, and tolerability.

Editor: Futura Costaglione