Innovative Chinese medicine makes another breakthrough abroad! Hansoh Pharmaceutical signs a licensing agreement with Roche for a colorectal cancer drug, valued at up to $1.45 billion.

Innovative Chinese medicine makes another breakthrough abroad! Hansoh Pharmaceutical signs a licensing agreement with Roche for a colorectal cancer drug, valued at up to $1.45 billion.

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Chinese innovative pharmaceutical company Hansoh Pharma has reached a licensing agreement with Swiss pharmaceutical giant Roche, granting it the overseas rights to a new investigational anti-cancer drug, highlighting the increasingly important role of Chinese biotechnology in the global innovation landscape.

According to Hansoh Pharma's announcement on October 17, the company will receive an upfront payment of $80 million. Under the agreement, Roche will obtain the global exclusive license to develop, manufacture, and commercialize the investigational antibody-drug conjugate (ADC) HS-20110 outside of mainland China, Hong Kong, Macau, and Taiwan.

The total value of the transaction could reach up to $1.45 billion, including the upfront payment and subsequent milestone payments. For investors, the agreement not only injects substantial early-stage funding into Hansoh Pharma (3692.HK), but also validates the value of its R&D pipeline through collaboration with a top-tier international pharmaceutical company, and secures potential future profit sharing from sales.

HS-20110 is currently in global Phase I clinical trials for the treatment of colorectal cancer and other solid tumors. In addition to milestone payments, Hansoh Pharma will also be eligible to receive tiered royalties from the future sales of the product.

A Transaction Framework Worth up to $1.45 Billion

According to the agreement details, Hansoh Pharma’s wholly-owned subsidiaries, Shanghai Hansoh Biomedical Technology Co., Ltd. and Changzhou Hengbang Pharmaceutical Co., Ltd., entered into this licensing agreement with Roche. The financial terms are clear, including a definite upfront payment of $80 million, and up to $1.45 billion in potential milestone payments.

The payment of these milestone fees is directly tied to the subsequent development, regulatory approval, and commercialization progress of HS-20110, meaning that Roche needs to successfully push forward with the drug's development and launch for Hansoh Pharma to receive the full potential payments. In addition, the agreement stipulates tiered royalties based on the future sales revenue of the product, providing Hansoh Pharma with long-term income prospects.

Focus Asset: CDH17-Targeted ADC New Drug

The core asset of this transaction is HS-20110, an investigational antibody-drug conjugate (ADC) targeting CDH17. ADC drugs deliver highly potent chemotherapy precisely to tumor cells and are considered one of the cutting-edge technologies in cancer treatment, as well as a current hotspot in global new drug development.

According to Hansoh Pharma’s disclosure, the candidate drug is currently undergoing global Phase I clinical trials in both China and the United States. Its main research focus is the treatment of colorectal cancer (CRC) and other solid tumors, which is a huge area of unmet medical need worldwide. Roche’s substantial investment in this collaboration indicates its strong confidence in the immense potential of HS-20110 as a breakthrough therapy.

Global Licensing and Market Division

This authorization is a typical “license-out” collaboration, with a clear division of market rights between the two parties. Hansoh Pharma retains all rights to the drug in mainland China, Hong Kong, Macau, and Taiwan, meaning the company will lead its future development and commercialization in the Greater China region.

Roche, in turn, obtains exclusive worldwide rights to develop, manufacture, and commercialize the drug outside these regions. According to Reuters, Roche’s subsidiary F. Hoffmann-La Roche will implement this agreement. This cooperation model enables Hansoh Pharma to leverage Roche’s strong global clinical development and commercialization network to accelerate the global rollout of HS-20110, while Hansoh can focus more on the development and market access within its home region.

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