Isotechnika Pharma Inc. (TSX: ISA) has signed a deal with China-based 3SBio Inc. to develop its lead organ rejection drug voclosporin.

The news helped Isotechnika shares climb 9 cents, or more than 41 per cent, to close at 30.5 cents in Toronto trading.

The Edmonton company will get $1.5 million US up front, $4.5 million invested through a convertible debenture, and royalties from sales in exchange for exclusive rights to all transplant and autoimmune indications of voclosporin in China, Hong Kong and Taiwan.

The deal excludes ophthalmic indications and medical devices previously licensed to Lux Biosciences, Inc. and Atrium Medical Corporation.

3SBio will be responsible for the clinical development and commercialization of voclosporin in China, while Isotechnika will provide commercial supply to 3SBio on a cost-plus basis.

"This agreement represents an important milestone for the continued development of voclosporin in transplantation indication worldwide," Isotechnika CEO Robert Foster said.  "3SBio's commercial expertise and leading franchise in nephrology in China make the company an ideal partner for the region, and provides further validation of voclosporin's market potential.  We continue to seek strategic partnerships in other regions."

3SBio CEO Jing Lou said he is committed to bringing voclosporin to China's growing number of transplant patients.

A Phase 2b clinical trial of voclosporin, completed last year, showed it to be as effective as standard transplant drugs, with improved patient safety.