Hengrui Pharma announced at noon that it had entered into a global strategic collaboration and licensing agreement with Bristol-Myers Squibb Company, under which it may receive related payments of up to USD950 million.

The stock surged in the afternoon session, last trading at HKD71.1, up 7.65%.

The group announced that it has reached a global strategic collaboration and licensing agreement with Bristol-Myers Squibb Company to jointly advance 13 early-stage programs spanning oncology, hematology and immunology.

Under the agreement, Bristol-Myers Squibb Company will pay HENGRUI PHARMA up to USD950 million, including an upfront payment of USD600 million, a first anniversary payment of USD175 million, and a second conditional anniversary payment of USD175 million in 2028. The total potential deal value could reach approximately USD15.2 billion, including the exercise of options for co-development programs and the achievement of development, regulatory and commercialization milestones for all programs.