Morgan Stanley initiates coverage on Hengrui Pharmaceuticals stock with Overweight rating

Published 01/07/2025, 06:44
Morgan Stanley initiates coverage on Hengrui Pharmaceuticals stock with Overweight rating

Investing.com - Morgan Stanley (NYSE:MS) has initiated coverage on Jiangsu Hengrui Pharmaceuticals (1276:HK) with an Overweight rating and a price target of HK$78.00.

The investment bank views Hengrui as having "one of the broadest and most well-balanced product portfolios/pipelines among Chinese biopharma companies," spanning oncology, metabolic & cardio, immuno & respiratory, and other therapeutic areas.

Morgan Stanley highlights Hengrui’s robust approval pipeline, with expectations for 5 new drug approvals in 2025, 5 in 2026, and 11 in 2027, totaling 47 NDA/BLA approvals from 2025 to 2027. The firm specifically noted the company’s recently approved HER2 ADC and late-stage GLP-1 candidates, which show competitive clinical profiles.

The global pharmaceutical market reached US$1.47 trillion in 2023, 6.6 times larger than China’s domestic market, presenting significant expansion opportunities for Hengrui’s products.

Since 2018, Hengrui has secured 14 out-licensing deals with an aggregate value of US$15 billion, covering various technology platforms and development stages, with Morgan Stanley expecting "more deals to be reached down the road" due to increasing interest from global biopharma companies in sourcing assets from China.

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