CMBI: Raises HANSOH PHARMA (03692) Target Price to HK$50.54; Roche Collaboration and ESMO Data Reinforce ADC Value

CMBI issued a research report stating that HANSOH PHARMA's (03692) ADC platform has received important validation on both the collaboration and clinical fronts. The bank reiterates its "Buy" rating and raises its target price from HK$49.12 to HK$50.54. The company announced a strategic licensing agreement with Roche covering a broad ADC portfolio, and at the 2026 European Society for Medical Oncology Congress (ESMO 2026) presented the first encouraging global EMBOLD data for Ris-Rez (B7-H3 ADC), as well as a reassuring pooled ILD safety analysis; late-breaking data from the 13-month follow-up of Mo-Rez (B7-H4 ADC) in platinum-resistant ovarian cancer (PROC) further reinforce platform read-through. The bank noted that the agreement with Roche covers two preclinical ADC assets and multiple programs against Roche-designated targets. Financial terms include a US$400 million upfront payment, a US$110 million first-anniversary payment, up to US$15 billion in milestone payments, plus royalties; Hansoh also retains the right to opt into US commercialization for up to two programs. In the global Phase 1b study, Ris-Rez at the 8 mg/kg dose selected for Phase 3 achieved a confirmed objective response rate of 61% (11/18) in second-line and later extensive-stage small cell lung cancer, with a manageable safety profile, consistent with the 58.3% response rate and met overall survival endpoint in China's Phase 3 ARTEMIS-008; the pooled ILD analysis showed an ILD incidence of 4% among 301 patients, mostly Grade 1-2, supporting broader combination development. The bank also noted that Mo-Rez at the 5.8 mg/kg dose in PROC achieved a confirmed objective response rate of 62% with a manageable safety profile, and GSK is accelerating multiple global Phase 3 trials. Reflecting the Roche transaction and improved visibility on the global prospects of Ris-Rez and Mo-Rez, the bank raised its target price to HK$50.54 based on DCF valuation (WACC 8.48%, terminal growth rate 3.5%).