Major Boost of RMB 100 Billion: Hengrui Pharma Sees Sharp Surge

The market experienced a slight adjustment today. Let's review the key developments.

On May 12, the market traded in a narrow range with low volume throughout the day, with the three major indices showing mixed performance. By the close, the Shanghai Composite Index fell 0.25%, the Shenzhen Component Index dropped 0.47%, and the ChiNext Index rose 0.15%.

A total of 1,379 stocks advanced, with 94 hitting their daily limit-up, while 4,048 stocks declined.

Optical communication concept stocks remained strong, with Tongding Interconnection securing its fourth consecutive limit-up, and Far East Holdings and Quartz Corp also reaching the limit-up.

Power and grid stocks were active, with Datang Power hitting its fifth consecutive limit-up, and Huadian Liaoneng and Dalian Thermal Power also reaching the limit-up.

The defense sector saw a notable move in the afternoon, with Chengfei Integration hitting the limit-up.

On the downside, pork stocks declined, with Huatong Joint Stock falling to the limit-down.

Notably, pharmaceutical leader Jiangsu Hengrui Pharmaceuticals Co.,Ltd. saw a sharp intraday surge, briefly touching the limit-up.

In terms of news, Jiangsu Hengrui Pharmaceuticals Co.,Ltd. received a significant boost. The company announced at noon on May 12 that it has entered into a global strategic collaboration and licensing agreement with Bristol-Myers Squibb (BMS). The two parties will jointly advance 13 early-stage projects covering oncology, hematology, and immunology to accelerate innovative drug development. According to the agreement terms, BMS is required to pay Hengrui up to $950 million in specified payments, including a $600 million upfront payment, a $175 million first anniversary payment, and a $175 million conditional second anniversary payment in 2028. If options for joint R&D projects are exercised and various development, registration, and commercialization milestones are met, the potential total transaction value of the agreement could reach approximately $15.2 billion (equivalent to RMB 100 billion).