CSPC Pharmaceutical Group's stock plummeted 12.82% during intraday trading on Friday after the company disclosed a major strategic partnership.

The Hong Kong-listed firm announced it has entered into a collaboration and license agreement with global pharmaceutical giant AstraZeneca for the development of innovative long-acting peptide medicines. The deal grants AstraZeneca exclusive global rights outside mainland China, Hong Kong, Macau, and Taiwan to CSPC's once-monthly injectable weight management portfolio, which includes one clinical-stage asset and three preclinical programs.

While CSPC is set to receive a significant upfront payment of $1.2 billion and is eligible for substantial future milestone payments—up to $3.5 billion for development and up to $13.8 billion for sales—along with double-digit royalties on net sales, the market's immediate reaction was sharply negative. This suggests investor concerns may center on the long-term strategic value of licensing out these potentially valuable assets or on the specific financial terms of the agreement.