Shares of Shenzhen-based AI-powered drug researcher XTalPi jumped as much as 23 per cent after it signed a US$6 billion deal with a firm founded by a Harvard University chemist with a reputation as a serial biotech entrepreneur.
DoveTree, established by professor Gregory Verdine, signed a definitive collaboration agreement in late June with XTalPi, the Chinese company said in a filing with Hong Kong’s bourse on Tuesday. Harvard describes Verdine as a “pioneer in chemical biology and a distinguished serial entrepreneur”.
DoveTree agreed to pay XTalPi US$100 million within 180 days of the signing for the exclusive worldwide rights to develop and commercialise drug candidates discovered by XTalPi, of which US$51 million has been paid.
The company will be entitled to payments of up to US$5.89 billion if the candidates meet regulatory and commercial milestones, in addition to royalties based on a single-digit percentage of annual net sales.
XTalPi’s shares ended the morning session on Wednesday up 8.5 per cent to a five-month high of HK$7.16.
