Hengrui Pharma (01276) is up 5.2%, trading at HK$47.96. The stock traded around 4.31 million shares, amounting to HK$204 million, with a high of HK$48.66 and a low of HK$45.38.
Citigroup raised its target price for Hengrui Pharma's H-shares from HK$119 to HK$120; its A-share target price was also raised from RMB109 to RMB111, maintaining the stock as one of its preferred picks.
In a research report, Citigroup noted that Hengrui Pharma's sale of exclusive rights to two drugs to Novo has a total potential value of up to USD 2.6 billion, including an upfront payment of USD 300 million, expected to be received in Q4 2026 and recognized in revenue in Q4 or Q1 2027.
The firm believes the deal structure is favorable, allowing Hengrui to leverage Novo Nordisk's (US.NVO) global leadership in metabolic diseases to realize value outside China, while retaining 100% rights in China through its strong commercial team. Partnering with Novo Nordisk will help accelerate global clinical and regulatory progress, and Hengrui is expected to receive further milestone payments subsequently.
The broker has incorporated licensing income from Bristol-Myers Squibb (BMS) and Novo starting in 2026 and 2027 respectively into its model, raising its forecast for total licensing income, driving revenue up 2% and 2%, and net profit up 5% and 4% in 2027 and 2028.
Currently, the Hang Seng Index stands at 24,527, up 3 points or less than 0.1%, with main board turnover exceeding HK$7.02 billion. The China Enterprises Index stands at 8,185, up 6 points or less than 0.1%. The Hang Seng Tech Index stands at 4,244, down 4 points or 0.1%. (vs)
Citigroup raised its target price for Hengrui Pharma's H-shares from HK$119 to HK$120; its A-share target price was also raised from RMB109 to RMB111, maintaining the stock as one of its preferred picks.
In a research report, Citigroup noted that Hengrui Pharma's sale of exclusive rights to two drugs to Novo has a total potential value of up to USD 2.6 billion, including an upfront payment of USD 300 million, expected to be received in Q4 2026 and recognized in revenue in Q4 or Q1 2027.
The firm believes the deal structure is favorable, allowing Hengrui to leverage Novo Nordisk's (US.NVO) global leadership in metabolic diseases to realize value outside China, while retaining 100% rights in China through its strong commercial team. Partnering with Novo Nordisk will help accelerate global clinical and regulatory progress, and Hengrui is expected to receive further milestone payments subsequently.
The broker has incorporated licensing income from Bristol-Myers Squibb (BMS) and Novo starting in 2026 and 2027 respectively into its model, raising its forecast for total licensing income, driving revenue up 2% and 2%, and net profit up 5% and 4% in 2027 and 2028.
Currently, the Hang Seng Index stands at 24,527, up 3 points or less than 0.1%, with main board turnover exceeding HK$7.02 billion. The China Enterprises Index stands at 8,185, up 6 points or less than 0.1%. The Hang Seng Tech Index stands at 4,244, down 4 points or 0.1%. (vs)
