UBS has issued a research report highlighting positive clinical data for Hengrui Pharma (HKG: 01276)'s weight-loss drug candidate HRS-7535. The Phase III clinical trial for the drug has successfully met its primary endpoint, and the company is expected to submit a New Drug Application (NDA) in China this year.

The bank's analysis indicates the clinical results for HRS-7535 are favorable. At the 44-week mark, the group receiving a once-daily 180mg dose recorded a weight reduction of 9.8%, with the weight-loss effect showing no signs of plateauing. The drug was also reported to have a good tolerability profile.

UBS forecasts that Hengrui's portfolio of GLP-1 products could achieve sales of up to 5.9 billion yuan in the Chinese market by 2035. The report also notes that the company has successfully met primary endpoints in two separate domestic Phase III clinical trials targeting type 2 diabetes.

Based on this outlook and the drug's promising data, UBS has reaffirmed its 'Buy' rating on Hengrui Pharma. The bank has set a target price of HK$97.4 for the company's H-shares.