Shares of Genetron Holdings (Nasdaq: GTH) surged to an all-time high on it teaming up with a subsidiary of Sino Biopharmaceutical (HKEX: 01177; OTC: SBMFF) to market its “blood-based early screening test” for hepatocellular carcinoma (HCC) knowns as HCCscreen™ in the Chinese hospital market.
Under the deal, Genetron, a leader in precision oncology and early cancer screening, will work with Chia Tai Tianqing Pharmaceutical Group Co., Ltd. (CCTQ) to find high-risk individuals for HCC, according to a statement posted by the company today.
To help with the collaboration, Genetron will provide manufacturing and laboratory operations for HCCscreen™ with its direct-to-consumers marketing strategy, while CTTQ utilizes its sales force and hospital relations.
Also under the deal, Genetron will pay CTTQ a promotional fee that will be based on a “percentage of revenues” collected from the partnership. The company expects that the collaboration will help further drive growth in its revenues for HCCscreen™ in China.
“For HCCscreen™, we have achieved success in expanding sales channels through medical examination centers and government procurement projects,” Sizhen Wang, the co-founder and chief executive officer of Genetron, said in a statement today.
He added, “Today’s announcement marks a new channel focusing on the hospital market, and represents the third key commercialization initiative we have embarked on. CTTQ is an ideal partner for HCCscreen™ because of its liver drug franchise and significant sales and marketing strengths. We expect this strategic partnership to bring us closer to our goal of lowering liver cancer-related death rates in China."
The news today continues Genetron’s trend in expanding in China. In late November, Genetron collaborated with the municipal government of Wuxi on a liver cancer screening project also using HCCscreen™. In August, the company announced it joined a research project of China’s Ministry of Science and Technology to build a liquid biopsy-based early detection technology platform.
Today’s high of $18.14 per American depositary share marks the highest trading price the company has seen in its public run that started in June 2020 when it raised $256 million in its IPO.
At the close of trading today, the stock in Genetron closed 14% higher at $15.65 per share.
So far this year, shares of Genetron are up nearly 12%.