Hutchmed (China) Ltd (AIM:HCM, NASDAQ:HCM, HKG:0013, FRA:H7T2) shares jumped 17% to 210p on Thursday after the oncology specialist struck a licensing agreement with GSK worth up to US$1.295 billion for its experimental KRAS-EGFR cancer therapy.
HUTCHMED will receive US$110 million upfront and could earn a further US$1.185 billion in development, regulatory and commercial milestone payments, alongside tiered royalties on net sales.
HMPL-A830 is a first-in-class antibody-targeted therapy conjugate designed to deliver a KRAS inhibitor directly to EGFR-expressing tumours while simultaneously blocking EGFR and KRAS signalling.
Initial clinical development will target colorectal, pancreatic and lung cancers, with a global Phase I programme expected to begin in the second half of 2026.
HUTCHMED will lead the Phase I programme before GSK assumes responsibility for subsequent development and commercialisation outside Greater China.
Acting chief executive Johnny Cheng said the agreement marked “a significant step” in maximising HMPL-A830’s potential and represented the first global licensing deal from HUTCHMED’s ATTC platform.
GSK oncology research head Hesham Abdullah said HMPL-A830’s dual KRAS-EGFR mechanism “has the potential to significantly improve upon current standard of care”.
HUTCHMED will retain full development and commercialisation rights in Mainland China, Hong Kong, Macau and Taiwan.