Hansoh Pharmaceutical (03692.HK) Rises Over 3% as BofA Highlights Solid Progress in Innovative Drug Development and Commercialization

According to the Zhitong Finance APP, Hansoh Pharma (03692) rose over 3%. As of press time, it increased by 3.24%, trading at HK$16.56, with a turnover of HK$20.5248 million.

Bank of America previously released a research report pointing out that innovative drugs have become the main income contributor for Hansoh Pharma. Last year, the company's revenue from new drugs and collaborative products increased by 37.1% year-on-year to RMB 6.9 billion, surpassing other large pharmaceutical manufacturers. This indicates solid progress in the development and commercialization of innovative drugs. The policy support for innovative drugs and the implementation of VBP have greatly restricted the generic drug market. It is expected that innovative drugs will continue to be the main growth driver in the pharmaceutical industry.

The bank upgraded the company's investment rating from "Underperform" to "Buy," mainly due to 1) improved revenue structure, with the adverse impact of Volume-Based Procurement (VBP) for generic drugs gradually weakening; 2) accelerated commercialization of products such as Ameile; 3) solid progress in overseas business, BD activities, and widely recognized ADC R&D capabilities; 4) a strong chronic disease pipeline that may benefit from the growing demand driven by an aging population.