CMB International released a report stating that HANSOH PHARMA (03692.HK) has granted MSD the global exclusive license for its preclinical oral small molecule GLP-1 receptor agonist.

HANSOH will receive a prepayment of 0.112 billion dollars and has the potential to earn up to 1.9 billion dollars in milestone payments, along with future sales royalties.

CMB International believes that besides the weight loss effect, the safety of small molecule GLP-1 drugs is a key differentiating factor. It maintains a "Buy" rating for the stock, believing that HANSOH has successfully developed a comprehensive pipeline of GLP-1 Assets, and that the collaboration with MSD will accelerate the development of HS-10535 and unlock its global potential. The Target Price has been raised to 25.24 yuan.