SK Chemicals’ shares climbed Friday after it won a contract with biopharmaceuticals giant AstraZeneca.
Shares of the South Korean chemical-drug company rose as much as 26% to 82,000 won ($64.21) in morning trade. The stock pared gains later but was still trading 11% higher at around noon, on course for the sharpest daily percentage gain in almost two years, according to FactSet.
The stock benchmark Kospi was last up 0.1%.
SK Chemicals said in a regulatory filing after Thursday’s market close that it signed a contract-manufacturing-organization agreement to supply AstraZeneca U.K. with a diabetes drug jointly developed by both companies for five years until the end of 2029. It didn’t disclose the value of the contract, citing a confidentiality agreement.
The diabetes treatment, Sidapvia, was approved in South Korea by the Ministry of Food and Drug Safety approved on June 30, SK Chemicals officials said.
Under the deal, SK Chemicals will manufacture and supply Sidapvia, and AstraZeneca will market it globally.