Goldman Sachs believes that HANSOH PHARMA can jointly promote or independently commercialize the product in the Mainland and Hong Kong and Macau.
According to Zhitung Finance APP, Goldman Sachs released a research report stating that HANSOH PHARMA (03692) announced on December 18 a global exclusive licensing agreement with Merck for the global sales rights of the oral GLP-1 small molecule drug HS-10535, with a first payment of 0.112 billion USD, milestone payments of 1.9 billion USD, and royalties based on product sales. Goldman Sachs believes that HANSOH PHARMA can jointly promote or independently commercialize the product in the Mainland and Hong Kong and Macau. Goldman Sachs rates HANSOH PHARMA as 'Buy' with a Target Price of 20.97 HKD.
The bank stated that HANSOH PHARMA's collaboration with multinational companies is in its second instance in the past two years, following the company's authorization of two ADC drugs to GSK. The bank views positively the growing global potential of the company's innovative product line. Due to the increasingly fierce competition in oral GLP-1 drugs, Goldman Sachs has noted that more latecomers are attempting to seek differentiation in target selection and indication development. However, HANSOH PHARMA has developed a comprehensive GLP-1 product portfolio covering both injectables and oral drugs, with another oral GLP-1 (HS-10501) already entering phase one clinical trials. Goldman Sachs believes this drug also has licensing potential. The company plans to conduct phase two research in the first half of 2025.