AstraZeneca has entered a global licensing agreement with Jacobio Pharmaceuticals, a Hong Kong-listed Chinese biotech company, to develop and commercialize a clinical-stage KRAS cancer drug candidate, the two companies announced on Monday.

Under the agreement, the United Kingdom-based pharmaceutical company will obtain exclusive rights to develop and commercialize the pan-KRAS inhibitor JAB-23E73 outside the Chinese mainland. In the mainland market, the two companies will jointly develop and commercialize the drug when it is successfully approved.

Jacobio will receive an upfront payment of $100 million and is eligible for up to $1.92 billion in development and commercial milestone payments, along with tiered royalties on net sales outside the Chinese mainland. AstraZeneca will be responsible for all clinical development, regulatory submissions and commercialization activities outside the Chinese mainland.

KRAS mutations are among the most common cancer drivers, and are frequently found in pancreatic, colorectal and lung cancers, areas where effective treatment options remain limited. The companies estimate that KRAS mutations occur in about 23 percent of all cancer patients.

"KRAS-mutated cancers represent one of the most challenging areas in oncology," said Matt Hellmann, vice-president of early oncology development at AstraZeneca. He said advancing drugs such as JAB-23E73, together with AstraZeneca's broader oncology portfolio, could help accelerate the development of treatments that may improve outcomes for patients.

JAB-23E73 is a novel pan-KRAS inhibitor developed by Jacobio using its induced allosteric platform and is designed to target multiple KRAS mutation subtypes.

The drug is currently undergoing Phase I clinical trials in both China and the United States, where early signs of anti-tumor activity have been observed.

Wang Yinxiang, chairman and co-chief executive of Jacobio, said the partnership marks an important step in bringing the company's research programs to the global stage.