Innovative drugs make another breakthrough overseas! HANSOH PHARMA signs a licensing agreement with Roche for colorectal cancer drugs, worth up to $1.45 billion

Chinese innovative pharmaceutical company HANSOH PHARMA has reached a licensing agreement with Swiss pharmaceutical giant Roche, granting the latter overseas rights to one of its investigational anti-cancer drugs, highlighting the increasingly important role of Chinese biotechnology in the global innovation landscape. According to HANSOH PHARMA's announcement on October 17, the company will receive an upfront payment of $80 million. Under the agreement, Roche will obtain global exclusive rights for the development, production, and commercialization of the investigational antibody-drug conjugate (ADC) HS-20110 outside of mainland China, Hong Kong, Macau, and Taiwan. The total value of this transaction could reach up to $1.45 billion, including the upfront payment and subsequent milestone payments. For investors, this agreement not only injects significant upfront capital into HANSOH PHARMA (3692.HK) but also validates the value of its R&D pipeline through collaboration with a leading international pharmaceutical company, securing potential future revenue sharing. HS-20110 is currently in global Phase I clinical trials for the treatment of colorectal cancer and other solid tumors. In addition to milestone payments, HANSOH PHARMA will also be eligible to receive tiered royalties from the sales of this product in the future. Transaction Framework of Up to $1.45 Billion According to the details of the agreement, HANSOH PHARMA's wholly-owned subsidiary Shanghai HANSOH Biopharmaceutical Technology Co., Ltd. and Changzhou Hengbang Pharmaceutical Co., Ltd. have entered into this licensing agreement with Roche. The financial terms are clear, including a confirmed upfront payment of $80 million and potential milestone payments that could total up to $1.45 billion. The payment of these milestone amounts is directly linked to the subsequent development, registration approval, and commercialization progress of HS-20110, meaning that Roche must successfully advance the drug's development and market launch for HANSOH PHARMA to receive the full potential benefits. Additionally, the agreement stipulates tiered royalties based on future potential product sales, providing HANSOH PHARMA with long-term revenue expectations. Focus Asset: CDH17-targeted ADC New Drug The core asset of this transaction is HS-20110, an investigational antibody-drug conjugate (ADC) targeting CDH17. ADC drugs are considered one of the cutting-edge technologies in tumor treatment by precisely delivering potent chemotherapy agents to tumor cells, and they are currently a hot topic in global new drug development. According to HANSOH PHARMA's disclosure, this candidate drug is currently undergoing global Phase I clinical trials simultaneously in China and the United States. Its primary research focus is on treating colorectal cancer (CRC) and other solid tumors, which represent a significant unmet medical need globally. Roche's substantial investment in this collaboration indicates its optimism about the enormous potential of HS-20110 as a potential innovative therapy. Global Licensing and Market Division This licensing agreement represents a typical "license-out" collaboration, clearly delineating the market rights of both parties. HANSOH PHARMA retains all rights to the drug in mainland China, Hong Kong, Macau, and Taiwan, meaning the company will lead its future development and commercialization in the Greater China region. Roche, on the other hand, has obtained exclusive rights for the development, production, and commercialization of the drug in all global markets outside of the aforementioned regions. According to Reuters, Roche's subsidiary F. Hoffmann-La Roche will be responsible for executing this agreement This cooperation model allows HANSOH PHARMA to leverage Roche's strong global clinical development and commercialization network to accelerate the advancement of HS-20110 in the global market, while also enabling itself to focus more on the development and access of the domestic market