CSPC PHARMACEUTICAL(1093.HK)：LANDMARK BD DEAL TO DRIVE LONG-TERM GROWTH

Core Insights - CSPC has entered a strategic collaboration with AstraZeneca (AZ) for advancing eight weight management and type 2 diabetes programs, which includes a significant out-licensing deal valued at over US$18.5 billion [1] - The partnership grants AZ exclusive global rights (excluding Greater China) to a portfolio of innovative long-acting peptide medicines, including SYH2082, a clinical-ready long-acting GLP1R/GIPR agonist [1] - CSPC has established a strong track record in business development, signing six out-licensing agreements since late 2024, which validate its drug discovery capabilities [2] Business Development and Financial Performance - CSPC reported total revenue of RMB19.9 billion for the first nine months of 2025, with RMB1.54 billion coming from out-licensing income [2] - Core revenue, excluding business development contributions, reached RMB18.4 billion, reflecting a 19% year-over-year decline, but showed signs of recovery with a 4.2% quarter-over-quarter growth in 3Q25 [2] - The selling expense ratio decreased from 29.2% in 9M24 to 24.1% in 9M25, while R&D expenses rose 7.9% year-over-year to RMB4.2 billion, maintaining a 21.0% R&D expense ratio [2] Future Outlook - CSPC is expected to generate a sustainable and recurring stream of business development income over the medium to long term, supported by its deep pipeline of late-stage candidates [2] - The company's earnings forecasts have been revised upward due to the landmark deal with AZ, with the DCF-based target price adjusted from HK$11.05 to HK$13.93 [3]