Shares of CSPC Pharmaceutical Group Limited (HKG:1093) soared by 9.55% on Monday, driven by the company's exclusive licensing agreement with AstraZeneca (LON:AZN) for a promising lipid-lowering therapy. The deal, valued at up to $1.92 billion, grants AstraZeneca access to CSPC Pharma's pre-clinical candidate, YS2302018, an oral Lipoprotein (a) disruptor with potential benefits for patients with dyslipidemia and related cardiovascular diseases.
Under the terms of the agreement, CSPC Pharma will receive an upfront payment of $100 million from AstraZeneca, with the potential for further development and sales milestone payments totaling up to $1.92 billion, as well as tiered royalties based on annual net sales of the relevant products. The YS2302018 therapy is designed to prevent the formation of Lipoprotein (a), a form of low-density lipoprotein that plays a key role in transporting cholesterol in the bloodstream.
The licensing deal with AstraZeneca, a global pharmaceutical giant, not only provides CSPC Pharma with a significant revenue stream but also validates the potential of its lipid-lowering therapy. This partnership has bolstered investor confidence in the company's prospects, driving the substantial surge in its share price on Monday.
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