HK Stock Market Move | Hansoh Pharma (03692) opens nearly 2% higher, Goldman Sachs believes the company can promote or commercialize HS-10535 in mainland China, Hong Kong, and Macau jointly or separately.

HANSOH PHARMA (03692) opened up nearly 2% higher, rising 1.96% to 18.7 Hong Kong dollars with a trading volume of 1.9591 million Hong Kong dollars as of the time of writing. Goldman Sachs released a research report stating that on December 18, HANSOH PHARMA announced a global exclusive licensing agreement with Merck for the global sales rights of the oral GLP-1 small molecule drug HS-10535, with an initial payment of 112 million US dollars and milestone payments of up to 1.9 billion US dollars, as well as royalties based on product sales. Goldman Sachs believes that HANSOH PHARMA can jointly promote or independently commercialize the product in mainland China and Hong Kong and Macao. The bank noted that this is the second collaboration HANSOH PHARMA has entered into with a multinational company in the past two years, having previously licensed two ADC drugs to GSK. The bank views positively the increasingly global potential of the company's innovative product line. As competition in the oral GLP-1 drug market intensifies, Goldman Sachs acknowledges that more latecomers are trying to differentiate themselves in target selection and indication development. However, HANSOH PHARMA has developed a comprehensive portfolio of GLP-1 products, including both injectable and oral drugs. Another oral GLP-1 drug (HS-10501) has also entered into phase I clinical trials, with Goldman Sachs believing it also has licensing potential. The company plans to conduct phase II research in the first half of 2025.