Hangzhou Rixin Pharmaceutical Soars Over 3%! Collaborates with GSK on HRS-9821 and 11 Projects, Pledging $5 Billion in Initial Payment

Hangzhou Rixin Pharmaceutical (01276) surged over 3% in the early trading session, with a price increase of 2.99%, currently reported at HK$77.35 and with an aggregate transaction value of HK$254 million.

Recently, Hangzhou Rixin Pharmaceutical ( 600276) collaborated with GSK on HRS-9821 and 11 projects. Hangzhou Rixin Pharmaceutical granted GSK the overseas rights to HRS-9821 and a maximum of 11 projects, as well as the option for GSK to exclusively select these projects. GSK will pay Hangzhou Rixin Pharmaceutical an initial payment of $5 billion, with the potential for Hangzhou Rixin Pharmaceutical to earn approximately $1.2 billion in milestone payments and corresponding sales commissions if all projects are exercised and milestones achieved.

Citic Securities pointed out that PDE3/4 inhibitors have great potential, and BD transactions may enhance Hangzhou Rixin Pharmaceutical's performance. HRS-9821 is a PDE3/4 inhibitor currently in clinical development, which has high potential as a therapeutic target for chronic obstructive pulmonary disease (COPD). This type of medication can be used as an add-on therapy without considering prior treatment plans and has shown enhanced bronchodilation and anti-inflammatory effects in early-stage clinical trials. It also has the potential to develop dry powder inhaler (DPI) formulations.