(Yicai) Nov. 5 -- Shares of Sino Biopharmaceutical soared after it said it had entered into a license agreement with German drugmaker Boehringer Ingelheim covering six preclinical oncology programs based on antibody-drug conjugate and T-cell engager technologies, with the deal potentially worth more than USD7 billion to the leading Chinese innovative biopharmaceutical company.

Sino Biopharm [HKG: 1177] rose 8.5 percent to HKD5.59 (71 US cents) a share as of 10.45 a.m. in Hong Kong today.

Sino Biopharm will undertake early development of six programs -- five from its unit LaNova Medicines Shanghai and one from its other subsidiary Beijing Tide Pharmaceutical -- aiming to produce next-generation cancer treatments, the parent company announced yesterday. 

Upon reaching agreed milestones, Boehringer Ingelheim may exercise options for exclusive development, production, and commercialization rights outside the Chinese mainland, excluding Hong Kong and Macao, for four of the programs, and global rights for the other two, Beijing-based Sino Biopharm added.

Under the deal, Boehringer Ingelheim will make upfront and near-term payments of USD358 million, followed by potential development, regulatory, and commercialization milestone payments and royalties of up to USD7 billion, Sino Biopharm noted.

"Our partnership with SBP Group (Sino Biopharm) brings together complementary science to broaden our development portfolio of antibody-drug conjugates and T-cell engagers," said Paola Casarosa, member of the board of managing directors and head of the innovation unit at Boehringer Ingelheim. "It puts our China strategy into action by connecting innovation from China with our global research and development capabilities.

"Together, we aim to accelerate promising therapeutic approaches and create new treatment possibilities for people living with difficult-to-treat cancers worldwide," she stressed.

Boehringer Ingelheim is expanding its oncology portfolio across cancer cell-directed therapies and immuno-oncology. On Oct. 12, it opened its China R&D Center in Zhangjiang Science City, located in the Shanghai Free Trade Zone, strengthening early clinical development and external innovation capabilities and linking local innovation to its global R&D network.

In 2024, Sino Biopharm and Boehringer Ingelheim penned a deal to jointly develop and commercialize the German firm's oncology pipeline in the Chinese mainland. Zongertinib, one of the drugs under the tie-up, received approval in China for two lung cancer indications, with Sino Biopharmaceutical overseeing its commercialization.

"Our second partnership with Boehringer Ingelheim marks an important milestone in SBP Group's international innovation strategy and further validates our scientific capabilities in next-generation oncology," said Theresa Tse, chairwoman of Sino Biopharm. "We will continue to expand our global partner network and contribute high-quality innovation from China to global healthcare."

Editor: Martin Kadiev