(Yicai) April 3 -- Remegen's Hong Kong-listed shares surged after the Chinese company said its innovative drug to treat Sjögren's syndrome received fast track designation from the United States Food and Drug Administration.

Remegen [HKG: 9995] closed 6 percent up at HKD29.30 (USD3.74) in Hong Kong today. Its Shanghai-listed stock [SHA: 688331] fell 0.5 percent to CNY52.97 (USD7.32).

The FDA granted Telitacicept an FTD for the treatment of patients with primary Sjögren's syndrome, the Yantai, Shandong province-based company announced yesterday.

Remegen's operating revenue jumped 40 percent to CNY1.1 billion (USD153 million) last year from the previous one, according to the firm's latest annual financial statement issued on March 28. Sales revenue from Telitacicept and its other core product Disitamab Vedotin exceeded the sales costs, turning profitable for the first time.

However, Remegen's net loss widened by CNY512 million (USD70.8 million) to CNY1.5 billion in the period, as research and development investment soared 33 percent to CNY1.3 billion. The company expects its R&D department to still need CNY2.8 billion in investment.

Remegen has already spent 95 percent of the CNY2.6 billion it raised from its initial public offering.

Remegen intends to apply for up to CNY5.5 billion worth of credit lines with banks and other financial bodies this year, according to the earnings report. Later, it issued a CNY2.55 billion private placement scheme, with all the proceeds set to be used on the R&D of new drugs.

Editor: Futura Costaglione