Quick Note - Hengrui (600276 CH) (Buy) - Big collaboration deal signed with BMS

Research evidence excerpt

Quick Note - Hengrui (600276 CH) (Buy) - Big collaboration deal signed with BMS

Global Markets Research

Hengrui 600276.SS 600276 CH 12 May 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

RatingBig collaboration deal signed with BMS Remains Buy

Target price CNY 72.38 RemainsQuick Note

Closing price CNY 53.52 11 May 2026What is new? A deal worth USD950mn and up to USD15.2bn in milestones

On 12 May noon (HKT), Hengrui announced that it has entered into a strategic research

collaboration with BMS (BMY US, Not rated) that involves four pre-clinical

oncology/hematology programs from Hengrui, four pre-clinical immunology programs from Research Analysts

BMS and five innovative programs that both parties co-developed on Hengrui’s platform. China Health Care &

Hengrui will lead these programs early-stage development and POC validation. Pharmaceuticals

Jialin Zhang, CFA, CPA - NIHKBMS will obtain the global (ex-greater China) rights to these four Hengrui programs and jialin.zhang@nomura.com

five co-developed programs, and Hengrui will gain rights to BMS’s four programs in +852 2252 6134

greater China.

Under the agreement, Hengrui will receive an upfront payment of USD600mn (equal to

around half of Hengrui’s R&D expense in FY25) from BMS, along with a USD175mn

payment in 2027, with another conditional payment of USD175mn in 2028. On top of

these, Hengrui is entitled to potential milestone payments of USD15.2bn and potential

tiered sales royalties (single-digit to double-digit, according to management).

During the update call, management mentioned that the company will gradually recognize

the upfront payment in 4Q26E into its financials, depending on the progress of the

involved 13 programs.

Good deal in time, dispelling concerns on deal flow slowdown