Shenzhen-based Pregene Biopharma signed an exclusive licensing agreement with Kite Pharma, a global leader in cell therapy, valued at up to $1.64 billion on Thursday, according to Nanfang Daily's news app.

This deal, featuring a $120 million upfront payment and potential milestone payments up to $1.52 billion, sets new records in Shenzhen's innovative drug sector for both upfront payment and total transaction value in an international partnership.

The collaboration aims to advance in vivo gene editing therapies targeting hematological and solid tumors. Under the agreement, Pregene will retain rights within China, while Kite Pharma will oversee global development, production, and commercialization.

Notably, this partnership breaks the traditional "license-out" model, with both parties deeply integrated from the early research stages, reflecting the high recognition of China's innovative capabilities by international peers.

"We are thrilled to partner with Kite to advance the development of next-generation in vivo gene editing therapies and help bring them to patients sooner," said Zhang Jishuai, cofounder and chief scientist of Pregene.

"Through this collaboration, we aim to fully integrate Kite's expertise in cell therapy with our unique strengths to overcome key technological barriers, accelerate proof-of-concept studies, and bring breakthrough therapies to patients faster, particularly in the fields of oncology, autoimmune diseases, and other areas in urgent need of innovation," he noted.

Pregene is located in Pingshan district of Shenzhen, Guangdong province, a burgeoning hub for the biopharmaceutical industry. This area hosts over 1,300 biopharmaceutical companies, collectively generating an industrial output exceeding 100 billion yuan ($14 billion) annually.

The National Biological Industry Base in the district has attracted foreign companies like Sanofi Pasteur and nurtured leading pharmaceutical companies such as Shenzhen Chipscreen Biosciences Co and Fosun Hanlin (Shenzhen) Biotechnology Co.