June 16 (Reuters) - Drug developer NextCure ( NXTC )

said on Monday it had signed a deal worth up to $745 million

with China-based drugmaker Simcere Zaiming to develop

a cancer therapy for solid tumors.

NextCure ( NXTC ) said it will gain global rights to the experimental

therapy, SIM0505, in all regions except Greater China, where

Simcere Zaiming will retain control.

Zaiming is eligible to receive payments throughout the

potential development phases, including upfront payment and

other milestones up to $745 million, as well as tiered royalties

up to double digits on net sales outside China, NextCure ( NXTC ) added.

WHY IT'S IMPORTANT

Simcere's SIM0505 belongs to a class of drugs known as

antibody-drug conjugates (ADCs), which are more targeted than

conventional chemotherapy.

These therapies, also known as 'guided missiles', use

antibodies to deliver toxic drugs directly to cancer cells,

helping to destroy the tumor while leaving healthy cells

unharmed.

CONTEXT

U.S. drugmakers have been licensing drugs from China for

potential new medicines at an accelerating pace, as they look to

rebuild pipelines of future products while facing a patent cliff

for the older drugs.

WHAT'S NEXT

The experimental cancer drug is currently being tested in an

early-stage trial in China. Initial data from the trial is

expected in the first half of next year.

The company expects to begin studying the drug in the U.S.

in the third quarter of 2025.