Hutchmed surges on $1.3 billion GSK licensing deal

Investing.com -- HUTCHMED (China) Limited saw its shares jump 14.2% in morning trading Thursday following the announcement of a global licensing agreement with a GSK plc subsidiary for HMPL-A830, a KRAS-EGFR antibody-targeted therapy conjugate.

The agreement carries a total potential value of up to $1.295 billion. HUTCHMED's subsidiary will receive an upfront payment of $110 million and is eligible for up to $1.185 billion in additional payments tied to development, regulatory, and commercial milestones. The deal also includes tiered royalties based on net sales.

GSK will obtain worldwide rights to develop and commercialize HMPL-A830 outside Mainland China, Hong Kong, Macau, and Taiwan. HUTCHMED will maintain full rights in those territories.

The therapy is built on HUTCHMED's ATTC platform, which combines monoclonal antibodies with small-molecule inhibitor payloads to target cancer through dual mechanisms. Acting CEO Johnny Cheng said the agreement represents a major step in maximizing HMPL-A830's potential and marks the first global licensing transaction from the ATTC platform.

Initial clinical development will target colorectal, pancreatic, and lung cancers, which have high rates of KRAS mutations. A global Phase I program is expected to begin in the second half of 2026.

The company held a business update webcast for investors Thursday. HUTCHMED also recently received NMPA conditional approval for fanregratinib (ATLED®) to treat FGFR2-altered intrahepatic cholangiocarcinoma.

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