Li Ka-Shing-Backed Hutchmed Sells Stake in Unit for $608 Million

Biopharmaceutical firm Hutchmed China Ltd., backed by Hong Kong billionaire Li Ka-shing, saw its shares rally on Thursday morning after announcing it will divest shares in a joint venture for about $608 million to sharpen focus on its core business of developing novel cancer therapies.

Hutchmed, whose biggest shareholder is Li’s flagship conglomerate CK Hutchison Holdings Ltd., will sell a combined 45% interest in Shanghai Hutchison Pharmaceuticals Ltd. to Chinese companies GP Health Service Capital Co. and Shanghai Pharmaceuticals Holding Co., according to stock exchange filings Wednesday.

Shares jumped as much as 12% Thursday morning, the ...