Morgan Stanley Upgrades Hansoh Pharmaceutical (03692.HK) to 'Overweight' with HK$24 Target Price

According to the Zhitong Finance APP, Morgan Stanley released a research report, giving Hansoh Pharma (03692) an "Overweight" rating with a target price of HK$24.

Hansoh Pharma Announces Global Exclusive License Agreement with Merck for the Development, Manufacturing, and Commercialization of Preclinical Oral Small Molecule GLP-1 Receptor Agonist HS-10535, Involving an Upfront Payment of $112 Million, Milestone Payments, and Royalties on Product Sales of up to $1.9 Billion.

Morgan Stanley believes the news has a positive impact on the stock price. Although HS-10535 has received less attention from investors in the past and may not significantly contribute to the valuation of Hansoh Pharma, this licensing deal demonstrates the quality of the company’s product pipeline and its R&D capabilities. Considering the increasingly fierce competition in the global GLP-1 market, this move helps mitigate risks, and resources can be allocated in the future to the development of other differentiated pipeline candidates.