CITIC International Upgrades Hansoh Pharmaceutical (03692) to 'Buy' with Target Price Raised to HK$29.30

According to the Zhisheng Finance APP, Zhongtai International issued a research report granting Hansoh Pharma (03692) a "Buy" rating, with the target price raised to HKD 29.30. Based on the above circumstances, the institution has increased its product sales revenue forecasts for 2025-27E by 0.2%-0.6%, reflecting the contribution of Ameile's overseas sales. The forecast for total revenue has been raised by 1.2%-3.7%, and the net profit forecast for shareholders has been increased by 1.3%-4.9%. Additionally, the forecast for royalty income after 2028 has been raised, reflecting the upfront payment and milestone revenue brought by the overseas licensing of HS20094.

The main viewpoints of Zhongtai International are as follows:

The Company Once Again Successfully Concludes an Overseas Licensing Agreement with a Renowned U.S. Pharmaceutical Enterprise

Hansoh Pharma Enters into Licensing Agreement with U.S.-Based Regeneron (REGN.US), Granting Regeneron Rights to Develop, Manufacture, and Commercialize GLP-1 Receptor Agonist HS-20094 Outside Mainland China and Hong Kong/Macau RegionsHansoh Pharmaceutical Group Company Limited has entered into a licensing agreement with the renowned U.S. pharmaceutical company Regeneron (REGN.US). Under the agreement, Regeneron is granted rights to develop, manufacture, and commercialize GLP-1 receptor agonist HS-20094 from Hansoh’s R&D pipeline outside mainland China and the Hong Kong and Macao regions. The company will receive an upfront payment of $80 million and is eligible for up to $1.93 billion in milestone payments. Additionally, after the product's market launch, the company will also receive royalties in the double-digit percentage range based on sales.HS-20094 is an investigational GLP-1/GIP dual receptor agonist that has successfully completed multiple Phase II clinical trials. This deal reflects Regeneron’s recognition of the high quality of this product. In 2023-24, Hansoh Pharma consecutively reached licensing agreements with global pharmaceutical giants GSK (GSKUS) and Merck (MRKUS) in the fields of oncology and metabolism. This latest achievement further demonstrates the high level of recognition Hansoh Pharma’s R&D capabilities have garnered among leading overseas enterprises.

Hansoh Pharma's Core Product Amelior in Oncology Approved in the UK Demonstrates R&D Strength

Hansoh Pharma announced yesterday that its core product in the oncology field, the third-generation EGFR-TKI Almonertinib (brand name: 阿美乐), has been approved in the UK for the following indications: 1) As a monotherapy for the first-line treatment of adult patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) harboring activating epidermal growth factor receptor (EGFR) mutations; 2) Treatment of adult patients with locally advanced or metastatic EGFR T790M mutation-positive NSCLC. Given that AstraZeneca's (AZNUS) third-generation EGFR-TKI Osimertinib has already been approved as a first-line treatment for EGFR-mutated NSCLC patients in many countries, the short-term sales forecast for Almonertinib in the UK remains cautious. However, the approval in the UK indicates high quality. The company will continue to advance the product’s market entry in the EU, and the recognition from the UK is believed to lay a solid foundation.

Risk Warning:1) New drug R&D is slower than expected; 2) Drug price reductions are greater than expected; 3) The promotion effect of new drugs is worse than expected.