Morgan Stanley: Jiangsu Hengrui Pharmaceuticals (01276) signs a $15.2 billion strategic cooperation agreement with BMS to accelerate globalization process.

Morgan Stanley released a research report stating that Jiangsu Hengrui Pharmaceuticals (01276) and Bristol-Myers Squibb announced a global strategic partnership covering 13 pre-clinical assets, with a total transaction value of $15.2 billion. This includes a $600 million upfront payment, annual payments totaling $350 million from 2027 to 2028, a maximum of $14.3 billion in milestone payments, and tiered sales milestone royalties. The bank maintains Hengrui as the preferred stock in the Chinese healthcare industry, giving it a "hold" rating with an H-share target price of HK$92. The bank believes that this strategic partnership, which covers various forms and asset modalities, further validates Jiangsu Hengrui Pharmaceuticals' early-stage research platform and enhanced global capabilities. In addition to short-term cash benefits, the two-way partnership structure and joint development and commercialization options are expected to accelerate Hengrui's global expansion and bring commercial synergies to its expanding portfolio of immunological products in the Chinese market.