PegBio Co-B (ASX: 02565) shares have surged more than 6%. At the time of writing, the stock is up 5.38% to HKD 8.43, with a turnover of HKD 31.46 million.

The significant price movement follows a recent corporate announcement. On the evening of June 5th, PegBio issued a voluntary announcement stating that the company has received the first commercial collaboration royalty payment of HKD 61 million from Shanghai Tenry Pharmaceutical.

According to the announcement, this payment stems from a prior collaboration agreement between the two parties concerning the commercialization and promotion of PegBio's self-developed, nationally classified Class 1 new drug, Vipenatide Injection (brand name: PaiDaKang®), in mainland China. The successful receipt of this initial royalty signifies that the partnership has progressed beyond a mere agreement and has now entered a phase of substantive execution and cash realization.

It is reported that PaiDaKang® is a long-acting GLP-1 receptor agonist independently developed by the group, which has already received marketing approval from the National Medical Products Administration for the treatment of type 2 diabetes. The product features a once-weekly dosing regimen, a therapeutic starting dose without the need for titration, and demonstrated stable blood glucose control, weight management benefits, and a favorable safety profile in key clinical studies.