(Yicai Global) Aug. 10 -- Shares of RemeGen soared after the Chinese maker of a targeted bladder cancer treatment said it has joined hands with US-based Seagen, marking China's largest up to USD2.6 billion overseas licensing agreement for a single drug.

RemeGen's stock price [HK: 9995] surged as much as 49 percent to HKD145.50 (USD18.70), and was 22.3 percent up in the afternoon. The firm raised USD590 million by listing its shares in Hong Kong last November in the world’s largest initial public offering in the biotech sector that year.

The Yantai-based company will give Seagen the right to develop its HER2-targeted antibody-drug conjugate disitamab vedotin abroad, except for certain Asian countries, RemeGen said in a statement yesterday.

Before the latest record, Beijing-headquartered oncology firm BeiGene had scored the country's biggest drug licensing deal abroad. Last January, the company was reported to be slated to gain USD2.2 billion by allowing Basel-based Novartis to develop its monoclonal antibody tislelizumab overseas.

RemeGen expects to receive a down payment of USD200 million for the anti-cancer drug deal. Up to USD2.4 billion should follow when certain milestones are reached. The agreement includes Japan and Singapore but the original developer will keep its rights in other Asian regions.

On June 9, China's medicine regulator approved the experimental RemeGen drug for marketing to treat stomach cancer. Clinical trials toward using the medicine to fight other types of cancer are underway, according to the firm.

Founded in 2008, RemeGen has research and development centers in Beijing and Shanghai. Its stateside facilities are located in California and Maryland.

Editor: Emmi Laine