SBP GROUP Shares Surge Over 4% in Early Trading Following Exclusive Licensing Deal with AstraZeneca for TQC3721

Stock News09:36

Shares of SBP GROUP (01177) rose more than 4% during the morning session. At the time of writing, the stock was up 3.94% to HK$5.01, with a turnover of HK$828.617 million.

Key Development

On July 8, the company announced that its subsidiary, Zhengda Tianqing Pharmaceutical Group Co., Ltd., has entered into an exclusive licensing agreement with AstraZeneca PLC for the group's self-developed PDE3/4 inhibitor (R&D code: TQC3721). This collaboration marks the second licensing deal with a multinational pharmaceutical company this year, following an agreement with Sanofi in February. It represents another significant milestone in the group's internationalization efforts and further validates its independent innovation capabilities and strong business development execution.

Agreement Terms

Under the terms of the agreement, the group will grant AstraZeneca an exclusive license to develop, manufacture, and commercialize TQC3721 in regions outside of China. AstraZeneca will also receive a global exclusive license for specific development programs related to TQC3721.

The group is entitled to receive an upfront payment of $200 million, along with potential development, regulatory, and sales milestone payments that could total up to $1.9 billion. Additionally, the group will receive tiered royalty payments based on the annual net sales of TQC3721, which could reach a double-digit percentage. The agreement's effectiveness is subject to customary closing conditions, including obtaining necessary regulatory approvals.

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