(Yicai Global) Nov. 28 -- Shares in Apeloa Pharmaceutical have surged today after the Chinese medical materials and intermediaries supplier announced last night that it had signed on to become a contract development and manufacturing organization for Italian multinational Bracco Imaging.

The Zhejiang province-based firm's stock [SHE:000739] was up nearly 4 percent at CNY13.60 (USD1.94) when the market closed at 3 p.m. The benchmark Shenzhen Composite Index ended down 0.27 percent.

A CDMO is a pharmaceutical company that operates on a contract basis for other industry players, offering research and development, manufacturing and other services. They are becoming increasingly common in clinical trials and drug commercialization.

Apeloa and Bracco's agreement covers the R&D and production for two drugs, Apeloa's statement said, while explaining the details of the deal were confidential and that it could not disclose further information.

Headquartered in Milan, Bracco is a leading global supplier of diagnostic imaging reagents. It develops, produces and sells medical contrast media and has worked with Apeloa for years, according to the statement.

Editor: James Boynton