(Yicai) Dec. 12 -- Shares in Sichuan Biokin Pharmaceutical soared by the exchange-imposed limit today after the Chinese drugmaker said it has granted US pharmaceutical giant Bristol Myers Squibb the exclusive rights to develop, commercialize and produce its experimental cancer drug in overseas markets in a deal that could be worth as much as USD8.4 billion.

Biokin's share price [SHA:688506] soared 20 percent to close at CNY131.11 (USD18.27) apiece.

Bristol Myers Squibb will have exclusive rights to develop and commercialize the cancer drug BL-B01D1, which is still in an early stage of clinical research, in all regions worldwide except for the mainland and US, Chengdu-based Biokin said today, citing the deal signed by its unit SystImmune and Bristol Myers Squibb yesterday. SystInnume will retain the exclusive rights to the mainland, including the right to manufacture the drug for other markets, it added.

The pair will jointly drive the development and commercialization of the drug, which has already been shown to be effective in the treatment of non-small cell lung cancer and breast cancer, in the US and share all profits and losses there, Biokin said. 

They will also share the cost of developing the treatment globally, the announcement added.

In return, Bristol Myers Squibb will pay SystImmune a down payment of USD800 million and up to USD500 million in contingent near-term payments. Once all the milestones agreed by the two parties have been reached, SystImmune will also be entitled to additional payments of as much as USD7.1 billion.

As a antibody-drug conjugate, BL-B01D1 is a new type of drug that performs targeted attacks on cancer cells and does much less damage to normal cells than conventional chemotherapy.

SystImmune will also receive tiered royalties from BL-B01D1's sales outside the US and China, while Princeton-based Bristol Myers Squibb will also get royalties from sales in the mainland.

Editors: Tang Shihua, Kim Taylor