(Yicai Global) Feb. 16 -- Shares in InnoCare Pharma plunged today after the Chinese drugmaker said its USD812.5 million exclusive global licensing agreement with the US’ biomedical giant Biogen to sell its new autoimmune disease medicine has been discontinued ahead of time.

InnoCare’s share price on the mainland [SHA:688428] plummeted 18.3 percent to close at CNY12.44 (USD1.80), while its Hong Kong traded-stock [HKG:9969] cratered 27.5 percent to HKD8.83 (USD1.12).

The agreement, which was signed in July 2021, gave Biogen the rights to distribute orelabrutinib, a small molecule drug used in the treatment of relapse-remitting multiple sclerosis, in major markets around the world outside China.

This deal has now been ‘terminated for convenience’s sake’ and Massachusetts-based Biogen’s global rights to the drug will end within 90 days, InnoCare said yesterday. No further reasons were given. Biogen paid a USD125 million upfront payment when the contract was signed.

InnoCare is pleased to have orelabrutinib as part of its autoimmune disease portfolio, and Phase II clinical studies are still ongoing, it said.

Business has not been good recently and InnoCare is predicting a net loss of CNY910 million (USD132.7 million) in 2022, a 13-fold widening from its 2021 losses, the firm said in its performance forecast released on Jan. 29.

Editor: Kim Taylor