Goldman Sachs Initiates Hansoh Pharmaceutical (03692) with 'Buy' Rating and HK$16.86 Price Target

According to the Zhisheng Finance APP, Goldman Sachs released a research report, giving Hansoh Pharma (03692) a "Buy" rating. It announced that its wholly-owned subsidiary, Shanghai Hansoh, has entered into a licensing agreement with GSK, with a target price of HK$16.86.

The bank believes that the two antibody-drug conjugate (ADC) deals with GSK will help the group open doors for establishing more global partnerships in the future, further validate the group's early efforts in ADC development, and unlock the value of this pipeline in the global market.

The report states that Hansoh Pharma will receive an upfront payment of $185 million and is eligible to receive milestone payments of up to $1.525 billion upon the achievement of related events. The group is expected to release longer-term follow-up data on the asset at a medical conference in 2024.