Shares of Innovent Biologics (01801.HK) surged 9.90% in early trading on Wednesday following the announcement of a major global strategic partnership with Japan's Takeda Pharmaceutical Co. The collaboration, potentially worth up to $11.4 billion, aims to accelerate the development of Innovent's next-generation immuno-oncology and antibody-drug conjugate cancer therapies.

Under the agreement, Innovent will receive an upfront payment of $1.2 billion, including a $100 million strategic equity investment by Takeda at a 20% premium to Innovent's 30-day weighted average share price. The deal encompasses two late-stage clinical therapies, IBI363 (PD-1/IL-2α-bias) and IBI343 (CLDN18.2 ADC), as well as an early-stage research project, IBI3001 (EGFR/B7H3 ADC). Innovent is also eligible for potential milestone payments totaling up to $10.2 billion.

The collaboration involves co-development and co-commercialization of IBI363 globally, with a focus on the U.S. market. Takeda will lead the initiatives under a joint governance framework, while Innovent grants Takeda commercialization rights for IBI363 outside of Greater China and the U.S. Additionally, Innovent provides Takeda with exclusive rights for IBI343 outside Greater China and exclusive option rights for IBI3001 outside Greater China. This partnership is expected to significantly boost Innovent's global presence and accelerate the entry of its oncology therapies into the global market, potentially benefiting patients worldwide and maximizing product value.