CSPC PHARMA (01093) jumped over 6% during intraday trading. As of press time, the stock was up 4.64% to HK$10.38 with a turnover of HK$1.177 billion.

CSPC PHARMA recently announced that it has entered into an exclusive licensing agreement with Madrigal Pharmaceuticals, Inc. (Madrigal) for the global development, manufacturing and commercialization of the group's oral small molecule glucagon-like peptide-1 (GLP-1) receptor agonist SYH2086. Under the terms of the agreement, the group has granted Madrigal exclusive rights to develop, manufacture and commercialize SYH2086 globally, while retaining the group's rights to develop and market other oral small molecule GLP-1 receptor agonist products in China. The group is entitled to receive total consideration of up to $2.075 billion, including an upfront payment of $120 million, potential development, regulatory and commercial milestone payments of up to $1.955 billion, and double-digit royalties on SYH2086's annual net sales.

HTSC noted that this business development deal landed faster than market expectations with substantial upfront payment and total package amount, demonstrating CSPC's strong R&D and BD capabilities in the metabolic platform. Considering the company's: 1) blockbuster EGFR ADC in late-stage BD negotiations, which is expected to become an important benchmark for domestic ADC overseas expansion; 2) potential important early-stage technology platforms with licensing expectations; 3) sales and development potential of some blockbuster products yet to be re-evaluated (such as KN026, PD-1/IL-15, etc.); and 4) expected sequential improvement in core business endogenous profits in 2-4Q25, with BD deals landing this year likely to boost apparent profits. The firm maintains its "Buy" rating.