(Yicai Global) March 26 -- Shares in Kelun Pharmaceutical leapt today after the Chinese pharma firm announced that it had granted an exclusive license to UK drug developer Ellipses Pharma to develop an investigational cancer drug in the US and European markets.

Kelun Pharma’s [SHE:002422] share price rose 4.66 percent to close at CNY22.48 (USD3.44).

London-based Ellipses will have the right to promote the experimental drug, which has the potential to treat brain cancer, in the US and Europe, the Chengdu, southwestern Sichuan province-based firm said today, without disclosing the financial terms.

Kelun Pharma, meanwhile, will keep the rights in China and parts of the Asia-Pacific region including South Korea, Singapore and Malaysia, it added.

The firm submitted an application to China's National Medical Products Administration earlier this month to start clinical trials, it added.

Editor: Kim Taylor