Goldman Sachs Initiates Hansoh Pharmaceutical (03692.HK) with 'Buy' Rating and HK$20.97 Price Target Following Global Licensing Deal for Oral GLP-1 Drug HS-10535

According to the Zhisheng Finance APP, Goldman Sachs released a research report stating that Hansoh Pharma (03692) announced on December 18th that it had entered into a global exclusive licensing agreement with Merck for an upfront payment of $112 million, milestone payments of $1.9 billion, and royalties based on product sales - specifically, the global sales rights for the oral GLP-1 small molecule drug HS-10535. Goldman Sachs believes that Hansoh Pharma can co-promote or independently commercialize the product in mainland China and Hong Kong/Macau. Goldman Sachs gives Hansohn Pharma a "Buy" rating with a target price of HK$20.97.

The bank noted that this is the second collaboration between Hansoh Pharma and a multinational company in the past two years, following the licensing of two ADC drugs to GSK. The bank expressed a positive outlook on the growing global potential of the company’s innovative product pipeline. As competition in GLP-1 oral drugs becomes increasingly fierce, Goldman Sachs mentioned noticing more latecomers attempting to differentiate themselves through target selection and indication development. However, Hansoh Pharma has developed a comprehensive GLP-1 portfolio covering both injectable and oral medications. Another oral GLP-1 drug (HS-10501) has also entered Phase I clinical trials, which Goldman Sachs believes holds licensing potential. The company plans to commence Phase II studies in the first half of 2025.