CMB International Maintains 'Buy' Rating on Hansoh Pharmaceutical (03692.HK), Raises Target Price to HK$25.24

According to the Zhisheng Finance APP, CMB International released a research report stating that it maintains a "Buy" rating for Hansoh Pharma (03692). It believes that Hansoh has successfully developed a comprehensive GLP-1 asset pipeline portfolio, and its collaboration with MSD will accelerate the development of HS-10535 and unlock its global potential. The company's target price has been raised to HKD 25.24.

The main viewpoints of CMB International are as follows:

Hansoh Pharma Grants MSD Global Exclusive License for HS-10535, an Oral Small Molecule GLP-1 Receptor Agonist in Preclinical Stage.

Hansoh Pharma to Receive $112 Million Upfront Payment with Potential Milestone Payments of up to $1.9 Billion and Future Sales Royalties

Global Development of Oral GLP-1 Drugs Underway.

Oral GLP-1 drugs are favored for their ease of use and production, attracting significant interest from many multinational pharmaceutical companies and biotechnology firms. Several oral GLP-1 small molecules are currently in Phase III clinical trials, including Eli Lilly's Orforglipron, Hengrui's HRS-7535, and Vincentage's VCT220, with over a dozen in Phase II. Among these oral GLP-1 candidates, Orforglipron, TERN-601, GSBR-1290, CT-996, and VK2735Oral have shown encouraging data in weight loss.

Safety is a key differentiator for oral GLP-1 drugs.

Lilly's Orforglipron (45 mg) demonstrated a 12.4% placebo-adjusted weight loss effect at Week 36, comparable to the 12.4% achieved by semaglutide in the STEP 1 trial at Week 68; however, the 15% discontinuation rate associated with Orforglipron is noteworthy. Multiple Phase III trials of Orforglipron are ongoing, with the earliest weight loss data from Phase III expected to be disclosed in the second half of 2025. Pfizer halted the twice-daily dosing regimen of danuglipron due to safety concerns and is advancing the once-daily regimen, with data expected to be released in the first quarter of 2025. Roche's CT-996 achieved a 6.1% placebo-adjusted weight loss at Week 4, compared to 4.9% for TERN-601 and 5.5% for the GSBR-1290 tablet; however, small sample sizes and short follow-up periods make direct efficacy comparisons challenging. The zero discontinuation rate of TERN-601 highlights its advantage in terms of safety. Notably, Viking’s oral GLP-1/GIP drug VK2735 achieved a 6.8% weight reduction at Week 7 and appears to have superior safety. Overall, aside from weight loss efficacy, the industry considers the safety of small-molecule GLP-1 drugs as a key differentiating factor.