Goldman Sachs has issued a research report maintaining a "Buy" rating on HENLIUS (02696) and raising its 12-month price target from HK$104.79 to HK$112.01. The report analyzes the strategic collaboration between HENLIUS and Sandoz, a global generic and biosimilar pharmaceutical company.

As of Thursday's market close, HENLIUS (02696) shares surged 7.32% to HK$70.35, bringing the stock's year-to-date gains to over 23%. Goldman Sachs believes the deal structure is significantly more attractive than traditional license-out models, marking a transition for HENLIUS from a single-product overseas expansion to a new phase as a global biosimilar platform company.

Broad Biosimilar Collaboration with Sandoz

HENLIUS has entered into a cooperation framework agreement with Sandoz, establishing a strategic partnership covering up to 10 monoclonal antibody and/or antibody-drug conjugate (ADC) biosimilar products or components. Specific terms have been agreed for the first three products and an option for one potential additional product. Beyond a US$77 million upfront payment and an US$8 million non-refundable option fee, HENLIUS is entitled to receive either 40% of net sales or 40% of net profits, depending on product economics.

Management noted that the default structure is a 40% share of net sales; however, if biosimilar prices fall below a predetermined threshold, the model shifts to a production cost reimbursement plus profit-sharing arrangement. Under this scenario, HENLIUS first recovers production costs and then receives 40% of the remaining profits, providing downside protection while allowing the company to maintain deep involvement in long-term commercial value distribution. Goldman Sachs views this structure as enabling HENLIUS to retain significantly more overseas value than under traditional royalty-based licensing models, while leveraging Sandoz's global commercialization platform.

This collaboration follows the 2025 agreement for HLX13 (an ipilimumab biosimilar) and represents an upgrade from single-product cooperation to a platform-level partnership. Goldman Sachs believes this will strengthen external recognition of HENLIUS's biosimilar product portfolio.

The investment bank also highlighted the substantial strategic value of partnering with Sandoz—a leader in European biosimilars and a significant player in the U.S. market with strong commercialization capabilities. Sandoz's recently launched denosumab biosimilar captured over 50% market share within three quarters of its U.S. launch.

CMC and Regulatory Execution as Key Differentiators

Goldman Sachs believes this transaction further validates HENLIUS's capabilities in the global biosimilar arena, particularly in CMC development, regulatory execution, and manufacturing quality. Management emphasized that all biosimilar applications submitted to the FDA by HENLIUS have been approved without receiving Complete Response Letters (CRLs), reinforcing the company's reputation for consistent delivery and compliance.

Goldman Sachs noted that as the FDA and EMA increasingly emphasize analytical similarity and manufacturing robustness—especially amid a trend toward reducing or eliminating confirmatory Phase III clinical requirements for biosimilars—these capabilities are becoming ever more critical.