Hengrui A record-setting US$15.2bn multi-asset global alliance, strengthening Hengrui’s shift from licensor to strategic co-creator

Research evidence excerpt

Hengrui A record-setting US$15.2bn multi-asset global alliance, strengthening Hengrui’s shift from licensor to strategic co-creator

5%), while A-shares Morgan Broking (Hong Kong) Limited

also gained 5% (vs. CSI Healthcare -0.5%). The deal is subject to US HSR antitrust

clearance, with closing expected in 3Q26. We believe this deal not only showcases

Hengrui’s comprehensive and deep early pipeline, but also once again confirms 600276.SS, 600276 CH

that China's innovative drug industry has differentiated drug discovery and early- Overweight

stage clinical development capabilities, valued by MNC pharma companies. The Price (12 May 26): Rmb56.11

deal suggests BMS is not concerned about the news that the US House has asked Price Target (Dec-26): Rmb70.00

the FDA to not consider clinical data from China for IND (investigational new

drug) applications (see our note). We expect more similar deals could occur

1276.HK, 1276 HK

between China biotech/pharma and MNCs in the future. We reiterate our OW/N

ratings for Hengrui’s A/H shares. Neutral

Price (12 May 26): HK$69.25

Price Target (Dec-26): HK$70.00

• The collaboration is organized into three modules, with the earliest P&L

contribution expected in 4Q26. Module 1 consists of four Hengrui-originated

oncology and hematology assets with FIC (first-in-class) or BIC (best-in-

class) potential, for which BMS acquires exclusive ex-Greater China

development, manufacturing, and commercialization rights. Module 2

consists of four BMS-originated immunology assets, also carrying FIC/BIC

profiles, for which Hengrui receives exclusive Greater China rights. Module

3 consists of five wholly new co-developed projects to be built from scratch on

Hengrui’s proprietary technology platforms, with both parties jointly selecting