IDEAYA Biosciences (IDYA) said Sunday it has entered into an exclusive licensing agreement with Jiangsu Hengrui Pharmaceuticals for its experimental cancer drug, SHR-4849.

Under the agreement, the drugmaker will develop and commercialize SHR-4849 outside Greater China. Jiangsu Hengrui will be eligible for up to about $1.05 billion in upfront and milestone payments, including a $75 million upfront fee and up to $200 million in development and regulatory milestone payments, as well as commercial success-based milestones.

Hengrui is also eligible to receive mid-single to low-double-digit royalties on sales outside Greater China.

IDEAYA said the upfront and projected research and development costs, including potential milestone payments, will not affect its previously guided cash runway of at least 2028.

The company said the drug candidate has shown "promising" results in preclinical studies, demonstrating tumor regression as a monotherapy and is currently in a phase 1 trial for advanced solid tumors in China.

It added that it intends to file a new drug application for SHR-4849 in the US in H1 2025.