Citi Reiterates 'Buy' Rating on Hansoh Pharmaceutical with HK$25 Target Price

Citi released a research report, giving Hansoh Pharma (03692) a "Buy" rating with a target price of HK$25.

The report stated that the company entered into a licensing agreement with GlaxoSmithKline (GSK.US), granting the latter the rights to develop and commercialize the HS-20089 drug outside of Greater China. This 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%, showing promising prospects. The company is expected to benefit from the rapid growth of the ADC market.

The bank pointed out that, considering HS-20089, there are currently only two B7-H4 ADCs in the clinical stage in the market. It believes that cooperation with GSK will accelerate the development process of the drug.

Editor: Shi Lijun