Shares of CSPC Pharma (01093) climbed close to 7% in early trading. As of the latest update, the stock is up 4.64%, trading at HK$7.90 with a turnover of HK$237 million.

The company announced it has entered into a new collaboration with AstraZeneca PLC focused on small interfering RNA (siRNA) therapeutics. Under the terms of the agreement, CSPC Pharma will receive an upfront payment of $30 million. It is also eligible to receive up to $540 million in potential research and development milestone payments and up to $1.2 billion in potential sales milestone payments. Additionally, the company will receive tiered royalties based on a single-digit percentage of the annual net sales of the resulting products.

The collaboration will see both companies jointly discover and develop preclinical candidate drugs (PCCs) targeting two specific pathways with potential for treating various kidney diseases. For each PCC project, AstraZeneca will have the option to obtain exclusive global or ex-China (as applicable) rights for development, manufacturing, and commercialization. CSPC Pharma will retain full rights for the development, production, and commercialization of one of the PCCs within mainland China.