[Stock Movements] Hengrui Pharmaceuticals rises 16%—enters a licensing agreement with Becton, Dickinson and Company—potential total transaction value can reach $15.2 billion

Hengrui Pharmaceutical (01276)
(SH: 600276) The company issued an announcement at noon, saying it has reached a global strategic cooperation and licensing agreement with Bristol-Myers Squibb (commonly referred to as “BMS” in Hong Kong) (US: BMY). Together, the two parties will advance 13 early-stage programs covering oncology, hematology, and immunology, to accelerate innovative drug R&D.

In the afternoon, Hengrui Pharmaceutical’s share price jumped by more than 16%, reaching a high of HK$76.75. At 1:32 PM, it was up 7.9%, at HK$71.25.

Hengrui Pharmaceutical: BMS will pay related payments of up to US$950 million

According to Hengrui Pharmaceutical’s announcement, this cooperation agreement includes four Hengrui oncology and hematology programs, four BMS immunology programs, and five innovative programs jointly developed by both parties relying on Hengrui’s R&D engine and a range of innovative technology platforms. All of them have not entered clinical research stages. Hengrui has an option to co-develop specific programs, and there is an opportunity to jointly carry out certain commercialization activities with BMS on a global basis.

Under this cooperation framework, BMS obtains exclusive rights worldwide to the aforementioned Hengrui original research programs and the programs jointly developed relying on Hengrui’s platform, excluding Mainland China, Hong Kong, and Macau. Hengrui Pharmaceutical obtains exclusive rights in Mainland China, Hong Kong, and Macau to the aforementioned BMS original research programs. BMS retains rights in other global regions outside these areas. Hengrui Pharmaceutical will be fully responsible for the early clinical development of the aforementioned programs, accelerating clinical proof of concept.

Hengrui Pharmaceutical’s announcement also stated that, under the agreement, BMS will pay Hengrui related payments of up to US$950 million, including a US$600 million upfront payment, a first annual payment of US$175 million, and a second conditional annual payment of US$175 million for 2028. The potential total transaction value of the agreement may reach approximately US$15.2 billion, including the exercise of options for the jointly developed R&D programs and milestone payments for development, registration, and commercialization for all programs.

Source: Announcement

		At the market open, chase buying/selling






	Global spotlight on the “Xi-Trump meeting”—will the stock market fully kick into action? Will Hong Kong stocks still rely on the earnings of Alibaba and Tencent?