GSK Inks Major ADC Licensing Deals with Hansoh Pharma; HKEX Healthcare ETF (513200) Offers Exposure to Leading Chinese Biopharma Innovators

Dec 29, 2023 15:13 CST Updated 15:13

GSK

Pharmaceutical R&D Manufacturer

Hansoh Pharma

Pharmaceutical Research, Production, and Sales

On the news front, China's innovative drug exports have once again achieved success. Hansoh Pharma has consecutively licensed two antibody-drug conjugates (ADCs), HS-20089 and HS-20093, to GSK. Hansoh Pharma will receive an upfront payment of $85 million and $185 million for the two licensing agreements, respectively, and is eligible to receive milestone payments of up to $1.485 billion and $1.525 billion upon the achievement of related events for these products.

HAITONG SecuritiesIt is believed that the overseas expansion of domestically produced ADCs is booming, with significant platform value. Domestic manufacturers can gain relative competitiveness by leveraging the engineer红利. The overseas expansion of a series of ADC drugs from Hansoh Pharma highlights the recognition of China's ADC drug platforms.

Hong Kong Stock Connect Pharmaceutical ETF (513200) provides one-click access to leading innovative pharmaceutical companies in Hong Kong, supporting the allocation of China's pharmaceutical innovation export industry chain. As of December 28, 2023, the scale of the Hong Kong Stock Connect Pharmaceutical ETF reached 1.31 billion yuan, making it the largest product tracking the same index; its average daily turnover in the past three months exceeded 120 million yuan, indicating active trading. Currently, the index Price-to-Sales ratio (PS) is 1.04x, which is at a relatively low percentile of 11.54% over the past three years.