China’s Sichuan Kelun-Biotech Biopharmaceutical has entered a major licensing agreement with U.S.-based Crescent Biopharma, granting the company global (ex-China) rights to develop and commercialise its experimental cancer therapy, SKB105.

The deal, announced Thursday in Shanghai, includes an $80 million upfront payment, with milestone payments reaching up to $1.25 billion, alongside tiered royalties tied to eventual net sales.

SKB105, currently in preclinical development, is being positioned as a potential treatment for solid tumours. Kelun-Biotech expects clinical trials to begin in Q1 2026, marking a significant step forward in expanding its oncology pipeline.

Under the agreement, Crescent Biopharma will oversee research, development, manufacturing and commercialisation of the therapy across all markets except mainland China, Hong Kong, Macau and Taiwan.

In a reciprocal move, Kelun-Biotech will also license Crescent’s experimental cancer drug CR-001, securing rights for the mainland China market and greater China region.

Analysts at Jefferies noted that the collaboration positions Crescent to generate “novel data at an accelerated pace,” underscoring the strategic value of cross-border biotech partnerships.

Kelun-Biotech, which focuses on innovative biological and small-molecule therapies for solid tumours and metabolic diseases, said it now has four innovative drug projects approved for marketing, reinforcing its growing presence in the global biopharma landscape.