(Yicai Global) Oct. 8 -- Shares of Chinese pharmaceutical firm Huadong Medicine soared after the company said its British unit will pay up to EUR14 million (USD16.2 million) to further develop four vegan skincare products of Belgian Kiomed Pharma.

Huadong's stock price [SHE: 000963] remained 10 percent up at CNY32.65 (USD5.10), rising by the daily upper limit. The shares are more than a fifth up this year.

Huadong's subsidiary Sinclair Pharma and Kiomed signed an exclusive agreement for the former to develop and sell the injectables, which include one skin booster and three dermal fillers, around the world except for the States, the Shanghai-based parent said in a statement yesterday.

Sinclair will pay the Herstal-headquartered firm EUR4 million (USD4.6 million) in advance and up to EUR10 million upon reaching certain milestones. Moreover, once the products hit the market, the London-based company will pay royalties to Kiomed.

The purchase targets the trend of vegan cosmetics. The high-purity products are superior to those using materials derived from animals based on all indicators, according to Huadong.

The booster, which is currently in clinical trials, is set to get the European Union's CE mark in 2023, the firm said. The three dermal fillers, which are used to reshape lips and facial skin, are in preclinical stages. They are expected to get the certification to prove that they can legally be sold in the EU after 2024.

Moreover, Huadong will timely start applying for authorization to sell the products in China, it added.

The deal fits the Chinese company's medium-term strategy. Huadong offered GBP169 million (USD230 million) in cash in August 2018 to buy Sinclair Pharma to expand into medical beauty products.

Editor: Emmi Laine