Changes in Hong Kong stocks | China Biopharmaceuticals (01177) rose more than 4%, Citi indicates that cooperation with STADA will be able to share the profits of authorized drugs through production and supply in the future

The Zhitong Finance App learned that China Biopharmaceuticals (01177) rose by more than 4%. As of press release, it had risen 3.15% to HK$5.725, with a turnover of HK$188 million.

Citi released a research report saying that Chia Tai Tianqing, a subsidiary of China Biopharmaceuticals, reached a strategic cooperation with German pharmaceutical company STADA on biosimilar drugs, granted STADA an exclusive license to commercialize pabolizumab monobiotics (TQB3570, anti-PD-1 monoclonal antibody) in the European Union, Switzerland, the United Kingdom and the Commonwealth of Independent States, and can choose to expand into the US and Gulf Cooperation Council (GCC) markets. The bank thought the cooperation was a surprise.

According to the agreement, Chia Tai Tianqing will collect a down payment and development, regulatory and sales milestone payments of up to 53 million euros, and enjoy a double-digit profit share. Citi pointed out that this cooperation confirms that China's biopharmaceuticals' biosimilar production platform is of commercial quality. In the future, it will be possible to share the profits of authorized drugs through production and supply, and benefit from the expansion of the global biosimilar market driven by the expiration of 118 US biopharmaceutical patents and total sales of more than 230 billion US dollars from 2025 to 2034. Zhongsheng Pharmaceutical revealed that the total down payment and recent milestone payments for authorized foreign transactions during the year reached US$355 million, and the total potential transaction amount reached US$3.4 billion.