China pharma/biotech: three partnerships reinforce sector momentum

BofA Securities published a report on China pharma/biotech, arguing that three partnership deals reinforce sector momentum. First, on Sep 28, Summit Therapeutics (Akeso's overseas partner for ivonescimab) and AstraZeneca entered an agreement under which AZ will invest US$2.0bn in Summit through convertible preferred shares and plans to develop ivonescimab clinically with its Claudin18.2 ADC and other oncology assets. This is seen as an endorsement of ivonescimab's differentiated PD-1/VEGF bispecific profile and is positive for Akeso; BofA maintains Buy with a HKD136 PO. Second, Hengrui licensed ex-China rights to its once-weekly oral GLP-1/GIP dual agonist HRS-1596 to Novo Nordisk for up to US$2.6bn (US$300mn upfront, up to US$2.3bn in milestones plus royalties), retaining Greater China rights;