HENGRUI PHARMA (01276) experienced a sharp increase in afternoon trading, rising over 16% at its peak. As of the latest update, the stock was up 6.21%, trading at HKD 70.15 with a turnover of HKD 1.014 billion.

The surge follows an announcement from HENGRUI PHARMA that it has entered into a global strategic collaboration and licensing agreement with Bristol-Myers Squibb (BMS). The partnership will focus on advancing 13 early-stage projects in oncology, hematology, and immunology.

Under the terms of the agreement, BMS will make payments to HENGRUI PHARMA totaling up to $950 million. This includes an upfront payment of $600 million, a first anniversary payment of $175 million, and a conditional second anniversary payment of $175 million in 2028.

The total potential value of the agreement could reach approximately $15.2 billion. This figure accounts for the exercise of options for joint research and development projects, as well as the achievement of development, registration, and commercialization milestones across all projects.