CStone Pharmaceuticals (HKEX: 2616), a biopharmaceutical company, has signed a contract to out-license ex-Greater China rights for two key late-stage immuno-oncology assets, sugemalimab (anti-PD-L1) and CS1003 (anti-PD-1), to EQRx, a biopharmaceutical company, it was reported on Monday.

According to the terms of the contract, CStone will receive an upfront payment of USD150m and up to USD1.15bn in milestone payments for both drugs, and separate tiered royalties. EQRx is to receive exclusive rights to lead development and commercialisation globally, excluding Mainland China, Taiwan, Hong Kong and Macau. CStone is to retains rights to CS1003 in Greater China, where it can continue to pursue development as a monotherapy or as part of its combination strategy for this product.

The contract closure is subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Act.