Haisco Pharmaceutical Surges After USD1.4 Billion Licensing Deal with Nuvectis Pharma

Shares of Haisco Pharmaceutical Group jumped sharply on June 23 after the Chinese drugmaker granted U.S.-based Nuvectis Pharma exclusive global rights to two innovative drug candidates in a deal valued at up to USD1.4 billion. The agreement marks Haisco's second major licensing deal this month, following a separate collaboration with Eli Lilly announced earlier in June.

Haisco's stock closed 8.1 percent higher at CNY53.21 (USD7.85) on the Shenzhen Stock Exchange, outperforming the broader market which fell 3.2 percent. Under the terms of the deal, Nuvectis will receive rights to develop, manufacture, and commercialize HSK42360—a BRAF inhibitor known as NXP200—outside China, as well as HSK39297—a Complement Factor B inhibitor known as NXP100—outside China, Southeast Asia, and India.

The agreement, which becomes effective after Nuvectis completes its next fundraising round, includes a USD40 million down payment and subsequent milestone payments. Total milestone payments could reach up to USD1.4 billion at various development and marketing stages, along with double-digit royalty percentages based on sales. Haisco noted that Nuvectis may make the first four milestone payments in common stock, provided equity does not exceed 40 percent of the total milestone value. If Nuvectis later sublicenses the drug rights to a third party, Haisco will receive a revenue share from any such deal.

HSK42360 (NXP200) is an oral, brain-penetrant, paradox-breaker BRAF inhibitor currently in Phase I clinical trials. It is designed to overcome acquired drug resistance seen with first-generation BRAF inhibitors and has demonstrated potential for treating primary brain tumors and metastatic encephaloma due to its central nervous system permeability. HSK39297 (NXP100) is a highly effective small-molecule inhibitor in late-stage development for diseases involving abnormal complement activation. Haisco has submitted a new drug application in China for paroxysmal nocturnal hemoglobinuria and is conducting Phase II trials for lupus nephritis and Phase III trials for primary Immunoglobulin A nephropathy.

Nuvectis Chairman and CEO Ron Bentsur said the in-licensing of these two clinical-stage candidates with best-in-class potential represents an expansion of Nuvectis' pipeline and strategy. The announcement comes just weeks after Haisco revealed a separate deal with Eli Lilly on June 1, under which Haisco will conduct early drug discovery and development for up to five target projects selected by the U.S. pharmaceutical giant, reserving exclusive China rights to some projects. That agreement could bring Haisco up to USD3 billion in down payments, milestone payments, and sales commissions.