Core Viewpoint - Morgan Stanley reports that Rongchang Biopharma has entered into an exclusive licensing agreement with AbbVie for RC148, which includes an upfront payment of $650 million, potential milestone payments of up to $4.95 billion for development, regulatory, and commercialization, and double-digit tiered royalties on net sales outside Greater China [1] Group 1 - The collaboration is seen as a surprise and may boost market confidence in the Chinese biotech and pharmaceutical sectors, as Morgan Stanley previously assessed the likelihood of this event as low and did not factor it into their models [1] - The deal reflects the competitive advantage of RC148, with key data for its use in first-line treatment of non-small cell lung cancer (NSCLC) expected to be announced at the ASCO conference at the end of May [1] - Morgan Stanley has raised the target price for Rongchang Biopharma from HKD 77 to HKD 116 and upgraded its rating from "Neutral" to "Overweight" [1]