CSPC Pharmaceutical Group Ltd saw its shares surge over 5% on Monday after announcing an exclusive licensing agreement with Jiangsu Alphamab for the development and commercialization of a novel cancer drug candidate in mainland China.

Under the agreement, CSPC PHARMA has secured the rights to develop and commercialize JSKN003, a potential best-in-class antibody-drug conjugate targeting HER2-positive solid tumors. In addition to an upfront payment, Jiangsu Alphamab will also receive milestone payments and royalties on any future sales of the drug in China.

Investors appear to be excited about the deal, which will bolster CSPC PHARMA's oncology pipeline with a promising new therapeutic candidate. JSKN003 has shown promising efficacy and safety data in early clinical trials, and the market for HER2-targeted drugs in China is expected to grow significantly in the coming years.