Panmure and Cavendish Reiterate Buy Rating on Hutchmed Following Licensing Deal with GSK
Hutchmed (China) Ltd has received renewed 'buy' ratings from Panmure Liberum and Cavendish after finalizing a licensing agreement with GlaxoSmithKline. The deal involves an upfront payment of $110 million for HMPL-A830, along with potential milestone payments estimated at up to $1.295 billion by Panmure or $1.185 billion according to Cavendish. Hutchmed retains full rights in Greater China and will lead early-stage trials before GSK takes over later development outside the region. The deal has driven a 15% surge in Hutchmed's share price, with both brokers highlighting strong growth potential from its expanding oncology pipeline. Panmure set a target of 400p per share while Cavendish cited external validation for early-stage assets that are currently undervalued. The partnership follows recent clinical successes and regulatory approvals, including Chinese approval for liver therapy ATLED and positive phase III results in lung cancer studies.
Topics: ATTC platform biotechnology GSK partnership Hutchmed pipeline