The Zhitong Finance App learned that CICC released a research report stating that it maintains Hanson Pharmaceuticals (03692)'s “outperforming the industry” rating, with a target price of HK$52.00, corresponding to price-earnings ratios of 43.9 times and 42.3 times for 2026 and 2027, respectively, with a potential upside of 51.25%. On October 19, Hanson Pharmaceuticals announced that it reached a multi-project strategic cooperation and licensing agreement with Roche, covering 2 pre-clinical ADCs and multiple new projects developed based on Hanson's own technology platform. Under the agreement, the company will receive a down payment of $400 million, a first-year annual payment of $110 million, and milestone payments and tiered commissions for future product sales that could potentially exceed $15 billion. The bank believes that this large BD has further verified the global competitiveness of the Hanson ADC platform.
CICC's main views are as follows:
A large overseas license was once again reached with Roche, and the value of the ADC platform continued to be realized
The cooperation covers 2 Hanson preclinical ADCs and multiple ADC projects developed with targets proposed by Roche and based on Hanson's own technology platform. The total potential transaction amount exceeds US$15.5 billion. In terms of equity, Hanson is responsible for global phase Ia and early development. Roche is responsible for subsequent development outside of Greater China, and Hanson reserves all rights in Greater China; at the same time, the company can choose up to 2 projects to participate in overseas development and share additional US commercialization benefits.
Following the licensing of the CDH17 ADC HS-20110 to Roche in 2025, this partnership expanded from a single asset to multi-project platform cooperation. CICC believes that this large BD has further verified the global competitiveness of the Hanson ADC platform. The down payment is expected to increase the company's profits and cash flow, while long-term milestones and sales shares provide room for continuous overseas value realization.
The company will present four studies at the 2026 ESMO conference
The B7-H3 ADC HS-20093 phase III ARTEMIS-011 study for the treatment of recurrent or refractory osteosarcoma was selected for the chair seminar; the phase III study of dameritinib combined with ametinib to treat MET amplification lung cancer after progress in EGFR-TKI treatment, and the EGFR/cMET dual antibody ADC HS-20122 advanced solid tumor phase I study were selected as an oral report; the SEZ6 ADC HS-20108 advanced solid tumor phase I study will be presented on a poster. The bank recommended focusing on reading out the relevant data.
Profit forecasting and valuation
CICC maintained its profit forecast for 2026 and 2027 unchanged. The current stock price corresponds to the 2026 and 2027 price-earnings ratios of 29.0 times and 28.0 times, respectively. The bank maintains a “outperforming industry” rating and target price of HK$52.00, corresponding to price-earnings ratios of 43.9 times and 42.3 times in 2026 and 2027, respectively, with a potential upside of 51.25%.
Risk Alerts
Product commercialization falls short of expectations; competitive landscape intensifies; clinical data falls short of expectations.