Hansoh Pharma Surges Over 6% on $1.57B B7-H4 ADC Licensing Deal with GSK

Gelonghui October 30 | Hansoh Pharma (3692.HK) surged over 6%, reaching HKD 15.02, with a total market value of HKD 89.119 billion. Since August 21, the stock has accumulated an increase of over 57%. Hansoh Pharma recently announced that it has granted GSK the global rights outside Greater China for the B7-H4ADC project HS-20089. The company will receive an upfront payment of USD 85 million, milestone payments of up to USD 1.485 billion (equivalent to over CNY 10 billion), and tiered royalties on net sales after commercialization.

Regarding the licensing agreement signed between Hansoh Pharma and GSK, Citi stated that the rights to develop and commercialize the HS-20089 drug outside of Greater China were granted to the latter. The product is a novel B7-H4-targeted antibody-drug conjugate (ADC). According to the published clinical data, the objective response rate (ORR) was 37.5%, indicating a promising outlook. It is expected that the company will benefit from the rapid growth of the ADC market. Citi has given Hansoh Pharma a "Buy" rating with a target price of HK$25.