EOG Resources completes $5.6 billion acquisition of Encino Acquisition Partners
On Monday, Citi reiterated its Buy rating and RMB123.00 price target for Jiangsu Hengrui Medicine Co. Ltd (600276:CH), following news of a significant licensing agreement. Jiangsu Hengrui Medicine has entered into a license-out agreement with IDEAYA Biosciences (NASDAQ:IDYA) for the global rights, excluding China, to SHR-4849. This clinical-stage DLL3 ADC with TOPOi payload is showing promise in early trials.
Under the terms of the agreement, Jiangsu Hengrui will receive a US$75 million upfront payment. Additionally, the company stands to gain up to US$200 million in development milestones and up to US$770 million in commercialization milestones. Moreover, Jiangsu Hengrui is entitled to receive single to double-digit royalties on product sales.
The initial clinical data from SHR-4849's Phase 1 trials in China have been positive, with an overall response rate of 73% among evaluable small-cell lung cancer (SCLC) patients. This response rate indicates that SHR-4849 is competitive with similar treatments currently available in the market.
Citi analysts anticipate more business development collaborations for Jiangsu Hengrui, particularly focusing on earlier-stage projects, including pre-clinical assets throughout 2024. They suggest that the market has not fully recognized the value of Jiangsu Hengrui's early-stage assets, which could present additional upside potential for the company's valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.