(Yicai Global) Dec. 16 -- US biotech firm AbbVie has been authorized to continue developing a Covid-19 antibody treatment based on the research done by Chinese biopharmaceutical company Hbm Holdings and two Dutch universities.

Hbm and Utrecht University have penned an agreement with AbbVie for the latter to develop and eventually sell the SARS-CoV-2 neutralizing antibody ABBV-47D11 to be used for treating patients hospitalized with Covid-19, the Shanghai-based company said in a statement today. The other university, Erasmus University Medical Center, didn't participate in the deal.

The four parties agreed to cooperate on developing the antibody in June. Its ongoing phase I clinical trial in the US is expected to be completed in May 2021, Wang Jinsong, chairman and CEO of Hbm, told Yicai Global.

AbbVie will carry out clinical research first in the US and then in Europe, Wang said, adding that the US firm will be responsible for the drug's global production and sales.

As the world is waiting for a broadly available vaccine, antibody treatments can help those who already caught the bug. "Some people, such as high-risk groups including frontline medical staff and police who may frequently be in contact with potential cases need to use antibodies," said Wang.

The Illinois-based firm will pay Hbm and Utrecht University a one-time license fee, phased fees for reaching development and regulatory milestones, and well as tiered royalties on sales, according to their agreement.

Established in 2016, Hbm has not launched any commercial products yet but makes most of its revenue from its platform that helps scientists create genetically engineered mice. The company recorded a loss of about USD48.4 million in the first half of this year. Its revenue was about USD6.1 million.

Hbm's stock price [HKG: 2142] fell 3.5 percent to HKD10.46 (USD1.40) this morning.

Editor: Emmi Laine