The Zhitong Finance App learned that Citi released a research report stating that it raised the target prices for Hengrui Pharmaceuticals (01276) (600276.SH) H shares and RMB 109, respectively, by 0.8% and 1.8% to HK$120 and RMB 111. Hengrui Pharmaceuticals is still one of the bank's preferred key recommendation targets.
Hengrui Pharmaceuticals and Novo Nordisk reached a licensing agreement for HRS-1596. The innovative drug authorized Novo Nordisk overseas, with a potential transaction value of up to 2.6 billion US dollars. According to Citigroup, the deal is another landmark foreign licensing partnership for Hengrui Pharmaceuticals, which strongly confirms the strength of its GLP-1/GIP platform. The down payment of 300 million US dollars is expected to be paid in the fourth quarter of 2026, and Hengrui Pharmaceuticals will confirm revenue in the fourth quarter of 2026 or the first quarter of 2027.
The bank believes that this transaction structure is extremely advantageous: Hengrui Pharmaceuticals can not only use Novo Nordisk's leading global strength in metabolic diseases to monetize value in markets outside of China, but also retain all interests in the Chinese market through its strong commercialization team. Novo Nordisk is an ideal global partner for the development of HRS-1596. Its expertise in clinical trials and regulatory matters is expected to accelerate the global development process of the drug; at the same time, Citi expects Hengrui Pharmaceuticals to receive multiple milestone payments in the future.