US Stock Market Move | HUTCHMED (HCM.US) surged over 14% after reaching a licensing agreement with GlaxoSmithKline plc Sponsored ADR for cancer drugs.

On Thursday, HUTCHMED (HCM.US) surged over 14%, closing at $13.75. In terms of news, HUTCHMED announced that its subsidiary Hutchison Whampoa Medicine (Shanghai) has entered into an exclusive development and licensing agreement with the subsidiaries of GlaxoSmithKline plc Sponsored ADR (GSK.US), granting GlaxoSmithKline plc Sponsored ADR global rights to develop and commercialize HMPL-A830 outside of mainland China, Hong Kong, Macau, and Taiwan. The clinical development will initially focus on indications for colorectal cancer, pancreatic cancer, and lung cancer. The agreement includes an upfront payment of $110 million, along with potential milestone payments for development, registration, and commercialization that could total up to $1.295 billion, plus royalties based on net sales. This globally innovative antibody-drug conjugate (ATTC) candidate utilizes a highly selective and potent KRAS (Kirsten rat sarcoma) small molecule inhibitor as the payload, which is conjugated to an anti-epidermal growth factor receptor (EGFR) antibody. The ATTC, guided by the antibody, allows the potent cytotoxic payload to selectively target and act on tumor tissues. Under the terms of the agreement, Hutchison Whampoa Medicine (Shanghai) 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 subsidiary of GlaxoSmithKline plc Sponsored ADR will be in charge of all subsequent clinical development and commercialization activities outside of mainland China, Hong Kong, Macau, and Taiwan.