CICC has released a research report maintaining its Outperform rating on Hansoh Pharma (03692) with a target price of HK$52.00, corresponding to price-to-earnings ratios of 43.9 times and 42.3 times for 2026 and 2027 respectively, implying a potential upside of 51.25%.
On October 19, Hansoh Pharma announced a strategic collaboration and licensing agreement with Roche for multiple ADC projects, covering two preclinical ADCs and several new projects developed on Hansoh's proprietary technology platform. Under the agreement, the company will receive US$400 million in upfront payment, US$110 million in first-anniversary payment, as well as potential milestone payments exceeding US$15 billion and tiered royalties on future product sales. CICC believes this large-scale business development deal further validates the global competitiveness of Hansoh's ADC platform.
Another Major Overseas Licensing Deal with Roche, ADC Platform Value Continues to Materialize
This collaboration covers two of Hansoh's preclinical ADCs and multiple ADC projects based on targets proposed by Roche and developed using Hansoh's proprietary technology platform, with a total potential transaction value exceeding US$15.5 billion. In terms of rights, Hansoh is responsible for global Phase Ia and earlier-stage development, while Roche is responsible for subsequent development outside Greater China, with Hansoh retaining full rights in Greater China. Additionally, the company has the option to participate in overseas development for up to two projects and share additional US commercialization revenue. Following the licensing of CDH17 ADC HS-20110 to Roche in 2025, this collaboration expands from a single asset to a multi-project platform partnership. CICC believes this large-scale business development deal further validates the global competitiveness of Hansoh's ADC platform, with upfront payments expected to enhance the company's profits and cash flow, while long-term milestones and sales royalties provide sustained overseas value realization potential.
The company will present four studies at the 2026 ESMO Congress. The Phase III ARTEMIS-011 study of B7-H3 ADC HS-20093 for the treatment of relapsed or refractory osteosarcoma has been selected for a presidential symposium. The Phase III study of damelitinib combined with aumolertinib for MET-amplified lung cancer after progression on EGFR-TKI therapy, and the Phase I study of EGFR/cMET bispecific ADC HS-20122 in advanced solid tumors have been selected for preferred oral presentations. The Phase I study of SEZ6 ADC HS-20108 in advanced solid tumors will be presented as a poster. CICC recommends paying attention to the relevant data readouts.
Earnings Forecast and Valuation
CICC maintains its earnings forecasts for 2026 and 2027 unchanged. The current share price corresponds to price-to-earnings ratios of 29.0 times and 28.0 times for 2026 and 2027 respectively. CICC maintains its Outperform rating and target price of HK$52.00, corresponding to price-to-earnings ratios of 43.9 times and 42.3 times for 2026 and 2027 respectively, implying a potential upside of 51.25%.
Risk Factors
Product commercialization may fall short of expectations; intensifying competitive landscape; clinical data may disappoint.
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