Gan & Lee Pharmaceuticals (SHA:603087) granted Italian drug manufacturer Menarini licensing rights for the Chinese company's bofanglutide drug for type 2 diabetes and obesity, according to a Tuesday filing with the Shanghai Stock Exchange.
The license deal will allow Menarini to develop and commercialize the drug across 39 European countries and regions, including the 27 members of the EU, as well as the UK, Switzerland, Norway, Iceland, Liechtenstein, and the Balkans.
Menarini will pay a non-refundable, initial payment of 62 million euros to Gan & Lee, as well as research, market launch, and sales milestone payments of up to 664 million euros, the Chinese diabetes drug company said.
Shares surged 10% during afternoon trading on Tuesday.