Shares of EVEREST MED (ASX: 01952) experienced a significant rise in early trading, climbing more than 5%. At the time of writing, the stock was up 4.18% to HKD 27.4, with a trading volume of HKD 47.8 million.

The upward movement follows the company's announcement of an exclusive licensing agreement with Australian-listed firm Dimerix Limited. The deal grants Everest MED the clinical development and commercialization rights for the innovative drug candidate DMX-200 across a broad region. This includes Greater China, South Korea, and several Southeast Asian nations such as Singapore, Malaysia, and Thailand.

DMX-200 is a small molecule inhibitor targeting the chemokine receptor 2 (CCR2). The drug candidate has already received orphan drug designation from both the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA), which can provide regulatory and commercial benefits.

Under the terms of the agreement, Everest MED will make an upfront payment of USD 10 million to Dimerix. The company is also committed to potential development and regulatory milestone payments of up to USD 30 million, and sales milestone payments that could reach as high as USD 300 million.

Additionally, Everest MED will pay tiered royalties ranging from 10% to 15% on the annual net sales of DMX-200 within the licensed territories. The comprehensive agreement clearly outlines the respective responsibilities and profit-sharing model for both parties involved in the collaboration.