Shares of EVEREST MED opened sharply higher following the announcement of a significant licensing agreement.

The company's stock rose nearly 5% at the open, trading at HK$31.12 with a turnover of HK$2.27 million.

EVEREST MED (ASX: 01952)

The biopharmaceutical firm has entered into an exclusive licensing and collaboration agreement with Travere Therapeutics, a Nasdaq-listed company.

Under the terms of the deal, Everest's wholly-owned subsidiary granted Travere exclusive global rights, excluding Greater China and certain East and Southeast Asian countries, to develop and commercialize the drug candidate civorebrutinib, also known as EVER001.

Everest is set to receive an upfront payment of $112.5 million.

The company is also eligible for potential development, regulatory, and commercial milestone payments totaling up to $1.03 billion across a maximum of five indications.

Additionally, Everest will receive tiered royalties on future annual net sales, ranging from high single-digit to double-digit percentages.

The completion of the transaction is contingent upon meeting specific conditions and regulatory approvals, and the final amount of milestone payments remains uncertain.