Bei Jing Shang Bao·2026-01-13 11:42Core Viewpoint - Rongchang Biologics has signed a significant exclusive licensing agreement with AbbVie for the dual-specific antibody drug RC148, with an upfront payment of $650 million and potential milestone payments up to $4.95 billion, totaling approximately $5.6 billion. This deal has led to a substantial increase in the company's stock prices, with A-shares hitting the daily limit and H-shares also experiencing significant gains [1][3][4]. Financial Impact - On January 13, Rongchang Biologics' A-shares opened 15.33% higher and closed at the daily limit of 114.46 yuan per share, marking a 20% increase and a total market capitalization of 645.2 billion yuan. The trading volume reached 2.369 billion yuan with a turnover rate of 13.08% [3]. - The H-shares also saw a rise, closing at 100.1 HKD per share, up 7.87% [4]. - The $650 million upfront payment from AbbVie is expected to alleviate the company's short-term cash flow issues, which have been a concern due to a high debt ratio of 61.18% and cash reserves of 1.07 billion yuan as of Q3 2025 [10][13]. Business Development Transactions - Since 2025, Rongchang Biologics has completed three major business development (BD) transactions, including the recent agreement with AbbVie. Previous deals included licensing agreements with Vor Bio and Santen Pharmaceutical, which also involved significant upfront and milestone payments [8][9]. - The RC148 drug targets PD-1 and VEGF pathways, aiming to enhance anti-tumor immune responses while inhibiting tumor-driven angiogenesis. Clinical studies are ongoing in China for various advanced malignancies [6][9]. Market Position and Future Outlook - The dual-target PD-1/VEGF antibody has become a popular target among multinational pharmaceutical companies, indicating a competitive landscape for such innovative therapies [7]. - The company aims to balance external licensing ("authorized blood transfusion") with internal development ("self-blood production") to ensure sustainable growth and enhance long-term value [14][15].