Takeda Pharmaceutical (TAK) said late Tuesday it signed a license and collaboration agreement with Innovent Biologics, covering two of the latter's late-stage oncology medicines.

Takeda will hold the license to develop, manufacture, and commercialize IBI363 and IBI343 globally, except in China, Hong Kong, Macau, and Taiwan, in exchange for a $1.2 billion upfront payment to Innovent Biologics upon closing.

The payment includes a $100 million equity investment in Innovent Biologics, which will also be entitled to additional payments from profit sharing, royalties, and achievement of certain milestones, Takeda said.

Takeda also said the deal grants it an exclusive option to license IBI3001, an early-stage investigational oncology medicine, from Innovent Biologics.

The company said it plans to establish manufacturing for the investigational medicines in the US.