Innovent Biologics, a Chinese biotechnology company, has entered into a partnership agreement with pharmaceutical giant Pfizer worth up to $10.5 billion for cancer drug development and commercialization.

The deal sent Innovent's shares surging 10% following the announcement, reflecting investor confidence in the partnership's potential. The agreement represents one of the largest biotech collaborations between a Chinese company and a major Western pharmaceutical firm.

The partnership comes amid a broader boom in China's biotechnology sector, as domestic companies increasingly seek international partnerships to develop and commercialize their drug pipelines. Chinese biotech firms have been gaining recognition for their innovative approaches to cancer treatment and drug development.

Pfizer, one of the world's largest pharmaceutical companies, has been actively seeking partnerships with biotech firms to expand its oncology portfolio. The collaboration with Innovent provides the American company access to promising cancer treatments developed by the Chinese firm.

The deal structure allows for payments of up to $10.5 billion, though specific terms regarding milestones, royalties, and development responsibilities were not immediately disclosed. The partnership is expected to focus on advancing cancer therapies through various stages of clinical development and eventual commercialization in multiple markets.