与BMS签署重大合作协议

Big collaboration deal signed with BMSQuick Note On 12 May noon (HKT), Hengrui announced that it has entered into a strategic research collaboration with BMS (BMY US, Not rated) that involves four pre-clinicaloncology/hematology programs from Hengrui, four pre-clinical immunology programs fromBMS and five innovative programs that both parties co-developed on Hengrui's platform.Hengrui will lead these programs early-stage development and POC validation.BMS will obtain the global (ex-greater China) rights to these four Hengrui programs and China Health Care & PharmaceuticalsJialin Zhang, CFA, CPA - NIHK jialin.zhang@nomura.com+852 2252 6134 five co-developed programs, and Hengrui will gain rights to BMS's four programs ingreaterChina.Under the agreement, Hengrui will receive an upfront payment of USD600mn (equal to around half of Hengrui's R&D expense inFY25)from BMS,along witha USD175mnpayment in2027,withanotherconditionalpaymentofUSD175mn in2028.Ontopofthese, Hengrui is entitledto potential milestonepayments of UsD15.2bn and potentialtiered sales royalties (single-digit to double-digit, according to management). During the update call, management mentioned that the company will gradually recognizethe upfront payment in 4Q26E into its financials, depending on the progress of theinvolved 13 programs. Gooddeal intime,dispellingconcernsondeal flowslowdownSevenmonths havepassed since the companystruck its lastcollaborationdeal,which partiallyexplainstherecentshareweakness,asinvestorswereaskingwhetherHengruicouldmaintain itsdeal flowpace.Thisdeal reaffirmsthe company's capabilityand moreimportantly, it is a China innovation out-licensing proxy, in our view. We also believe the company set a good example regarding maintaining confidentialityabout this deal until it was officially disclosed. Wemaintain our Buy rating and with an unchangedTP of HKD87.49 Appendix A-1 See Disclaimers for Nomura Group entity details. Analyst Certification subject securities orissuers referred to in this Research report, (2) no part of my compensation was, is or will be directly or indirectly related tcthe specific recommendations or views expressed in this Research report and (3) no part of my compensation is tied to any specific investmentbanking transactions performed by Nomura Securities International, Inc., Nomura International plc or any other Nomura Group company. IssuerSpecificRegulatoryDisclosures Securities International, Inc. ('NSI") and Instinet, LLC (ILLC'), U. S. registered broker dealers and members of SIPC. Hengrui (1276 HK)Rating and target price chart (three year history) Valuation MethodologyOurtarget priceof CNY87.49 is based on a DCF model assuming WACC of 8.7%andterminal growthof 5.0%.Thebenchmark indexfor the stock is CsI300.valuation premium narrowed and (3) unsuccessful BD and clinical progress; ImportantDisclosures Onlineavailability of research and conflict-of-interest disclosures Nomura Group research is available on www.nomuranow.com/research, Bloomberg, Capital IQ, Factset, LSEG.Important disclosures may be read at http://go.nomuranow.com/research/m/Disclosures or requested from Nomura Securities International, Inc.If you have any difficulties with the website, please email grpsupport@nomura.com for help. The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, aportion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report arenot registered/qualified as research analysts under FINRA rules,may not be associated persons of NSl, and may not be subject to FINRA Rule2241 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account. the Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, and Niplc aregenerally engaged in the trading of swaps and other derivative products, any of which may be the subject of this report. The distribution of all ratings published by Nomura Group Global Equity Research is as follows: 57% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 34% of companies with this rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA)with this rating were supplied material services** by the Nomura Group.41% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 57% of companies with this rating are investment banking clients of the Nomura Group*. 0% of companies (which are admited to trading on a regulated market in theEEA) with this rating were supplied material services by the Nomura Group2% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are cla