Hansoh Pharmaceutical (3692.HK) Drops Over 7% in Early Trading as Company Raises HK$3.9 Billion via 6.5% Discounted Share Placement for Innovative Drug R&D

According to the Zhitong Finance APP, Hansoh Pharma (03692) dropped over 7% in the morning session. As of the time of writing, it fell by 6.03%, trading at HK$36.48, with a turnover of HK$270 million.

On the news front, Hansoh Pharma announced plans to place 108 million shares at an issue price of HKD 36.3 per share, representing a discount of approximately 6.49% compared to the previous day's closing price of HKD 38.82. The net proceeds from the placement are expected to be approximately RMB 3.897 billion. Of this amount, around 65% will be used for the research and development of new innovative drugs in therapeutic areas such as oncology, autoimmune diseases, central nervous system disorders, and metabolic diseases, as well as for licensing innovative drugs and technology platforms. Approximately 25% will be allocated for the construction of new production facilities and R&D laboratories for innovative drugs, along with upgrading the group’s existing R&D laboratories and production facilities. The remaining 10% will be utilized for working capital and other general corporate purposes.

In addition, the company recently released its interim results, with revenue of 7.434 billion yuan in the first half of the year, a year-on-year increase of 14.3%; net profit attributable to shareholders of 3.135 billion yuan, a year-on-year increase of 15.0%. CICC stated that the performance exceeded our expectations, mainly due to milestone payments from the company's collaboration with GSK. In the first half of the year, the company's innovative drugs and collaboration product revenue reached 6.145 billion yuan, a year-on-year increase of 22.1%, accounting for 82.7% of total revenue, an increase of 5.3 percentage points. Among this, collaboration revenue was 1.656 billion yuan, mainly from upfront payments for the oral GLP-1 authorization to Merck and milestone payments from GSK. Additionally, in June 2025, the company licensed overseas rights of HS-20094, a GLP-1/GIP receptor agonist, to Regeneron, with an upfront payment of 80 million US dollars and milestone payments of 1.93 billion US dollars, which will boost 2H25 performance.