Innovent Biologics Shares Surge on Spero Deal That Could Be Worth $1.1 Billion

By Fabiana Negrin Ochoa

Shares of Innovent Biologics jumped Wednesday after the Chinese biopharma firm reached a licensing agreement with U.S.-listed Spero Therapeutics that could be worth $1.1 billion.

Innovent's stock climbed as much as 11.5% in Hong Kong to 100.40 Hong Kong dollars, crossing the HK$100 level for the first time this year and reaching its highest intraday level since October 2025.

Under the terms of the deal, Innovent can collect about US$1.1 billion in payments, including upfront fees and milestone payouts. It is also eligible for tiered royalties on net sales.

The deal adds to a recent trend of tie-ups between Chinese companies and Western counterparts in the pharma space, momentum analysts expect to continue as multinationals seek to leverage innovation in China.

Earlier this week, China-listed Dizal (Jiangsu) inked a deal with AstraZeneca that could be worth up to $1.5 billion. Astra also recently signed a licensing agreement with Sino Biopharmaceutical potentially worth as much as $1.9 billion.

The intensive collaboration between innovative Chinese pharma firms and international majors confirms that cross-border transactions remain structurally robust and aren't being materially disrupted by geopolitical headwinds, Citi analysts said in a note.

For Innovent, the Spero deal is a further validation of its autoimmune franchise, they said. Citi has a buy call on the Hong Kong-listed stock.

Spero, which specializes in next-generation medicines for immunology and inflammation, will obtain exclusive global rights to develop IBI355, an experimental monoclonal antibody for various autoimmune conditions. Innovent will retain rights in Greater China.

Spero plans to initiate a Phase 2 trial of IBI355 for IgG4-related disease, a serious, chronic fibroinflammatory condition with a significant treatment burden and limited therapeutic options in the second quarter of 2027.

Innovent aims to start a Phase 2 trial in China by early 2027 for Sjögren's disease, a chronic autoimmune disorder that also has few therapeutic options.

Innovent was last trading 7.2% higher, bringing year-to-date gains to about 26%.

Write to Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com

(END) Dow Jones Newswires

July 15, 2026 03:03 ET (07:03 GMT)