Hansoh Pharma - H: Platform collaboration deal with Roche confirms early drug discovery capabilities once more

Hansoh's new Roche collaboration agreement moves the partnership from a single ADC asset to a portfolio built partly on Hansoh's technology platform. We remain Overweight on Hansoh and see this as another important validation of Hansoh's platform and early-stage drug discovery capabilities, expecting the stock to respond positively with a potential single-digit percentage gain. Roche signs a multi-program ADC deal covering two Hansoh preclinical ADCs and multiple ADC programs against Roche-proposed targets using Hansoh's platform. Hansoh will lead early development through global Phase Ia trials, while Roche takes over further development outside mainland China, Hong Kong, Macau and Taiwan, where Hansoh retains rights. Hansoh receives US$400m upfront and US$110m on the first anniversary, and is eligible for more than US$15bn in development, approval and sales milestones plus royalties. Hansoh can opt in to co-develop up to two programs outside Greater China, creating potential upside f