Hengrui Medicine (01276.HK) Surges Over 10% on $12 Billion Licensing Deal with GSK

According to the Zhitong Finance APP, Hengrui Pharma (01276) opened more than 10% higher. As of the time of writing, it rose by 10.65%, trading at HK$75.3, with a turnover of HK$22.3189 million.

On the news front, Hengrui Pharma announced this morning that it has reached an agreement with GSK to grant the latter the global exclusive rights (excluding mainland China, Hong Kong SAR, Macao SAR, and Taiwan region) for the HRS-9821 project and the exclusive option for global exclusive licenses for up to 11 projects (excluding mainland China, Hong Kong SAR, Macao SAR, and Taiwan region) under a paid license. GSK will pay Hengrui an upfront payment of $500 million. If all projects are opted into and all milestones achieved, Hengrui could be eligible to receive potential total milestone payments of approximately $12 billion based on successful development, regulatory approval, and sales milestones in the future.

In addition, Hengrui will have the right to receive tiered sales royalties from GSK (excluding mainland China, Hong Kong, Macao, and Taiwan). The announcement noted that the signing of this agreement will help expand the overseas markets for HRS-9821 and multiple innovative products in the fields of oncology, respiratory, autoimmune, and inflammation treatment, providing high-quality treatment options for patients worldwide. It will also further enhance the company's innovative brand and overseas performance.