China’s Jiangsu Hengrui Pharmaceuticals said on Wednesday it has agreed to grant a paid license for its innovative cancer drug trastuzumab rezetecan to the Swiss unit of India’s Glenmark Pharmaceuticals .

Under the agreement, Hengrui will receive an upfront payment of $18 million and can get milestone payments of up to $1.09 billion from Glenmark Specialty S.A. The Chinese firm will also be eligible for royalties on net sales of the drug in the licensed territories.

Drug is targeted ADC therapy for tumor cells

The deal gives the Indian company rights to a drug from a class called antibody drug conjugate. These drugs work like “guided missiles” by killing tumor cells while leaving healthy ones unharmed.

Their targeted approach has led to billions in investment from pharmaceutical giants

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