HK Stock Market Move | CSPC PHARMA (01093) rose over 5% in early trading, following a major collaboration agreement with AstraZeneca. The company's external authorizations continue to be realized.

CSPC PHARMA (01093) surged more than 5% in early trading, rising 2.19% to HK$9.81 as of the time of writing, with a trading volume of HK$4.46 billion. On the news front, recently, CSPC PHARMA and its subsidiary authorized AstraZeneca to exclusively develop, manufacture, and commercialize 8 innovative long-acting peptide drug projects globally (excluding mainland China/Hong Kong/Macau/Taiwan), including SYH2082 and 3 preclinical stage molecules, and to cooperate on another 4 new projects. AstraZeneca will pay a total of $1.2 billion in upfront payments and up to a cumulative maximum of $3.5/13.8 billion in development/sales milestone payments. CSPC Innovation Pharmaceutical, a subsidiary of CSPC, is entitled to receive 35% of the upfront payment and, depending on the actual circumstances, subsequent development/sales milestone payments and royalty fees. CICC believes that by 2025, the company has already achieved external authorization for oral small molecule GLP-1 ($120 million upfront payment), AstraZeneca strategic collaboration ($110 million upfront payment), Ibrutinib lipid (15 million USD upfront payment), and ROR1 ADC (15 million USD upfront payment). The company's research pipeline also includes EGFR ADC/SiRNA series and other innovative assets with leading progress, and the bank expects continuous external authorization and more milestone revenue recognition in the future.