Shanghai Henlius Biotech (HKG:2696) is in discussions with Johnson & Johnson and Roche Holding about selling rights to an experimental cancer therapy, Bloomberg News reported Tuesday, citing people familiar with the matter.

The potential deal for HLX43, an antibody-drug conjugate in mid-stage testing in China, could bring Shanghai Fosun Pharmaceutical's (SHA:600196; HKG:2196) unit several hundred million dollars upfront, along with milestone payments tied to the drug's progress, according to the report.

Negotiations are ongoing, and Henlius may seek a higher valuation as more clinical data emerges, though there is no certainty a deal will be reached, Bloomberg said.

Henlius Biotech shares gained over 3% in late-morning trade Tuesday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)