HK Stock Market Move | SBP GROUP (01177) rises over 4% again; Citi says cooperation with STADA will allow sharing of profits from licensed drugs through production and supply in the future.

SBP GROUP (01177) rose over 4% again, up 3.15% as of press time at HK$5.725, with turnover of HK$188 million. Citi released a research report stating that SBP GROUP's subsidiary Chia Tai Tianqing has entered into a strategic cooperation with German pharmaceutical company STADA for biosimilars, granting STADA exclusive rights to commercialize pembrolizumab biosimilar (TQB3570, an anti-PD-1 monoclonal antibody) in the European Union, Switzerland, the United Kingdom, and the Commonwealth of Independent States, with the option to expand to the United States and Gulf Cooperation Council (GCC) member states. The bank considers the cooperation a positive surprise. Under the agreement, Chia Tai Tianqing will receive an upfront payment and development, regulatory, and sales milestone payments of up to EUR 53 million, and will enjoy double-digit profit sharing. Citi noted that this cooperation confirms that SBP GROUP's biosimilar production platform is of commercial quality, and in the future it will be able to share in the profits of licensed drugs through production and supply, and benefit from the global biosimilar market expansion driven by 118 U.S. biologic drug patents expiring between 2025 and 2034, with combined sales exceeding US$230 billion. SBP GROUP revealed that outbound licensing transactions during the year totaled US$355 million in upfront and near-term milestone payments, with potential total transaction value reaching US$3.4 billion.