Dongguan Securities: Assigns a "Buy" rating to Hengrui Medicine, its innovative drug business maintains rapid growth.

Dongguan Securities research report pointed out that Hengrui Medicine has reached an agreement with Glenmark Specialty S.A. to license the company's independently developed Class 1 innovative drug RC485 monamine antibody project to Glenmark Specialty for a fee. RC485 monamine antibody has been approved for domestic listing in May 2025, and is used to treat adult patients with unresectable locally advanced or metastatic non-small cell lung cancer with HER2-activating mutations who have previously received at least one systemic therapy. This is also the first domestically developed antibody drug conjugate approved for HER2 mutated NSCLC patients in China. The injection of RC485 monamine antibody for the new indication of treating breast cancer patients has been accepted for marketing approval and included in priority review. This time, the company will license the independently developed Class 1 innovative drug RC485 monamine antibody project to Glenmark Specialty for a fee, receiving a $18 million upfront payment and qualifying for up to $1.093 billion in milestone payments and sales royalties. This is the company's second major overseas innovative drug deal this month. The company is accelerating its research and development innovation and integrating into the global innovation network. As a leading domestic innovative drug company, the innovative drug business maintains rapid growth, contributing incrementally to the company's performance. The company is rated as "Buy".