Hengrui Pharma(SH:600276) Guan Cha Zhe Wang·2025-09-09 11:40Core Viewpoint - HengRui Medicine has entered into an exclusive licensing agreement with Braveheart Bio for its self-developed cardiac myosin small molecule inhibitor HRS-1893, marking a significant step in the company's strategy to expand its innovative drugs internationally through the NewCo model [1][3]. Group 1: Licensing Agreement Details - HengRui Medicine will receive a total of $65 million in upfront payments (half in cash and half in equity) and $10 million for technology transfer, along with potential milestone payments of up to $1.013 billion for clinical development and sales, plus sales royalties [1]. - This agreement follows HengRui's previous licensing of a GLP-1 innovative drug portfolio for $6 billion to a new company formed by Bain Capital, showcasing a trend in utilizing the NewCo model for international drug commercialization [1][5]. Group 2: Market Potential and Product Information - HRS-1893 is a highly selective cardiac myosin small molecule inhibitor aimed at treating obstructive hypertrophic cardiomyopathy (oHCM), a common hereditary heart disease affecting over a million patients globally, with limited current treatment options [3][4]. - Currently, only one drug targeting the same mechanism, Mavacamten, has been approved, which achieved sales of $602 million in 2024, reflecting a 161% year-on-year increase, indicating significant market potential for HRS-1893 [4]. Group 3: Industry Trends and Company Performance - The NewCo model is becoming a typical case in the industry as Chinese innovative drugs transition from merely importing to actively participating in global medical innovation [5]. - In 2025, HengRui Medicine's licensing agreements have totaled $775 million in upfront payments, with potential total amounts reaching $15.558 billion, highlighting the international market's recognition of Chinese innovative drug development capabilities [5]. - For the first half of 2025, HengRui reported revenues of 15.761 billion yuan, a 15.88% increase year-on-year, with net profits of 4.450 billion yuan, up 29.67% [6].