Shanghai Junshi Biosciences (HKG:1877, SHA:688180) plans to contribute intellectual property, pre-clinical research assets, and related technology rights to a newly formed oncology-focused joint venture, according to a Friday Hong Kong bourse filing.

In return, the biotech company will receive a 14.55% stake in the venture, Shanghai OnTarget Biopharmaceuticals.

The contributed assets were valued at about 53.1 million yuan, with the joint venture issuing 250,000 yuan of new registered capital to Junshi as consideration.

Junshi expects to record an unaudited gain of about 52.1 million yuan upon completion of the transaction.

The joint venture is developing multi-specific antibody and antibody-conjugate technologies for oncology treatments.

Hong Kong-listed shares of the firm were down more than 2% in Monday's late-morning trade.