INNOVENT BIO (01801) opened significantly higher on the Hong Kong market today, rising nearly 7%. As of the latest update, the stock was up nearly 9%.

The company announced this morning that it, along with its subsidiaries, has entered into a global strategic licensing and collaboration agreement with Pfizer. The agreement encompasses multiple collaboration models, including licensing, co-development, and co-commercialization. Under the terms of the deal, INNOVENT BIO will receive an upfront payment of $650 million and is eligible for up to $9.85 billion in potential development, regulatory, and commercial milestone payments, bringing the total potential transaction value to $10.5 billion. Furthermore, for each approved product, INNOVENT BIO is entitled to receive tiered royalties of up to double-digit percentages. The collaboration portfolio reportedly includes several antibody-drug conjugates with novel and differentiated payloads, as well as multi-specific antibodies featuring differentiated immunomodulatory properties and unique structural designs. Specifically, it covers an oncology portfolio of 12 programs: 8 from INNOVENT BIO's early-stage pipeline and 4 new (de novo) projects to be proposed by Pfizer.