RemeGen's stock price surged 5.07% during intraday trading on Thursday, reflecting significant investor optimism.

The sharp increase appears to be a direct response to the company's announcement that it has secured approval from China's National Medical Products Administration (NMPA) to initiate a Phase I/IIa clinical study for its novel bispecific antibody-drug conjugate (ADC), RC288. The candidate is designed to treat locally advanced unresectable or metastatic malignant solid tumours.

RC288 is engineered to target two proteins, PSMA and B7H3, which are highly expressed in various solid tumours. This regulatory milestone represents a key step forward in the company's drug development pipeline, though management has noted that the trial approval is not expected to have a material impact on near-term financial performance and highlighted the inherent uncertainties of early-stage development.