(Yicai) Feb. 26 -- Shares of Mabwell (Shanghai) Bioscience jumped today despite the Chinese biotechnology company announcing the termination of licensing agreements for two oncology drugs.

Mabwell [SHA: 688062] closed 5.3 percent up at CNY29.66 (USD4.12) in Shanghai today.

Due to significant fluctuations in product prices, Mabwell and the units of Yangtze River Pharmaceutical Group ended the deal they signed in 2021 for the production and commercialization of two cancer drugs, the Shanghai-based company announced late on Feb. 23.

One of the drugs is used to restore the immune function of T cells attacking tumor cells, and the other is used to prevent and treat leukopenia caused by bone marrow suppression and white blood cell deficiency in patients with bone marrow failure.

The licensees had already invested CNY163 million (USD22.7 million) in the research and development of the drugs and down payments, so Mabwell will have to refund a portion of that sum, the firm added.

Mabwell also released its earnings for last year on Feb. 23. Its net loss widened over 10 percent last year from the previous one, as the termination of the licensing deal resulted in a loss of CNY110 million in pre-tax profit in the period.

The company’s revenue jumped 362 percent to CNY128 million, mainly because of an exclusive licensing agreement with US biopharmaceutical firm Disc Medicine over a drug to treat iron homeostasis-related diseases, such as β-thalassemia and polycythemia vera, for which Mabwell received a non-refundable down payment of USD10 million.

Editor: Futura Costaglione