HK Stock Market Move | HUTCHMED (00013) sees its afternoon increase widen to over 15% after reaching a licensing agreement with GSK for the KRAS-EGFR antibody-drug conjugate cancer medication.

HUTCHMED (00013) saw its afternoon gains expand to over 15%. As of publication, it rose by 12.23%, trading at HKD 21.46, with a transaction volume of HKD 369 million. On the news front, on the afternoon of September 3, HUTCHMED announced that its subsidiary Hutchison China MediTech Limited has entered into an exclusive development and licensing agreement with GSK plc, granting the GSK subsidiary the rights to develop and commercialize HMPL-A830 globally, excluding Mainland China, Hong Kong, Macau, and Taiwan. Clinical development will initially focus on indications for colorectal cancer, pancreatic cancer, and lung cancer. According to the terms of the agreement, Hutchison China MediTech Limited will be responsible for the global Phase I development program for HMPL-A830, which is expected to start in the second half of 2026. The agreement includes a USD 110 million upfront payment, as well as potential milestone payments for development, registration, and commercialization, totaling up to USD 1.295 billion, in addition to royalties based on net sales. It is reported that this first-in-class antibody-drug conjugate (ADCC) candidate drug utilizes a highly selective and potent KRAS (Kirsten rat sarcoma) small molecule inhibitor as the active payload, conjugated to an anti-epidermal growth factor receptor (EGFR) antibody. The ADCC selectively targets tumor tissue and exerts activity through antibody guidance, allowing the effective cytotoxic payload to focus on the tumor.