Innovent Biologics Surges After Signing Up to $10.5 Billion Deal With Pfizer

By Jason Chau

Shares of Innovent Biologics rallied, after the company struck a partnership with U.S. drugmaker Pfizer that could generate up to $10.5 billion for the Chinese biotech company.

Innovent's stock surged 11% Friday in Hong Kong, putting it on track for its largest single-day gain in a year.

Pfizer and Innovent signed a global licensing and collaboration agreement for 12 early-stage cancer drugs, including eight Innovent-originated treatments and four Pfizer-proposed programs, the companies said in a statement on Thursday.

Under the terms of the deal, Innovent will receive a $650 million upfront payment and is eligible for up to $9.85 billion in potential milestone payments, in addition to double-digit royalties on sales of each licensed product if they obtain regulatory approval.

Innovent has emerged as a key partner for major global drugmakers seeking to capitalize on the growing pipeline of innovative drugs and biotechnology breakthroughs coming out of China.

Earlier this year, it signed a deal with Eli Lilly to develop cancer and immunology drugs valued at up to $8.5 billion. Late last year, it struck a cancer drug deal with Takeda Pharmaceutical valued at up to $11.4 billion.

"This deal is another testament to Innovent's R&D platform," said Jialin Zhang, China healthcare analyst at Nomura.

"This endorsement from Pfizer suggests the cross-Pacific collaboration in life sciences stands firm, despite recent rising concerns about this area," he added.

Investors have remained bullish on Innovent and China's broader biopharma sector amid the wave of licensing deals. Innovent's shares have risen 8.1% so far this year, after doubling last year.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

May 29, 2026 01:44 ET (05:44 GMT)