Recently, the world's top investment bank Goldman Sachs released its first research report on Henlius (02696.HK), initiating the company a "Buy" and setting a 12-month target price of HK$100.70. This target price represents a significant upside from the company's current share price, reflecting Goldman Sachs' high recognition of the global commercialization prospects of Henlius' core innovative product pipeline, especially the potential First-in-Class PD-L1 antibody-drug conjugate (ADC) HLX43, as well as the company's solid global operational capabilities. In the report, Goldman Sachs emphasized that Henlius is successfully transforming from a leading biosimilar company to a globally competitive innovative biopharmaceutical company, and its value is expected to be re-evaluated in the market.
Industry Expertise and Innovation Endorsed by International Banks, Global Strategy Pays Off
The Goldman Sachs report highlights Henlius’ differentiated and globally competitive product pipeline. Among these, HLX43, as a cornerstone innovative asset, is identified as the primary driver of the company’s future value. The report elaborates on HLX43’s competitive advantages: its innovative mechanism combines the precision targeting and killing ability of an ADC with the systemic immune activation of immunotherapy, demonstrating significant potential to overcome resistance to existing immuno-oncology treatments. Clinically, based on data presented at the 2025 ASCO and WCLC conferences, HLX43 has demonstrated breakthrough efficacy in refractory patient populations, including 2L EGFRwt non-squamous NSCLC and PD-L1 negative NSCLC. Over the next 12 months, additional proof-of-concept (PoC) data are expected to be released, further supporting its development across multiple indications such as cervical, esophageal, and colorectal cancers, and reinforcing its potential as a pan-tumor therapeutic agent.
Simultaneously, Goldman Sachs highly recognizes the strategic value of Henlius’ established biosimilar business as a "cash flow cornerstone." The report notes that the company has two waves of innovative products poised for global launch, leveraging its established international commercial partnership network for commercialization, which is expected to generate sustainable and stable revenue streams. In particular, high-margin, predictable royalty income from overseas markets for already-launched products such as HANQUYOU® (trastuzumab biosimilar) and HLX15 (daratumumab biosimilar) will provide solid financial support for the company’s high-intensity, sustained innovation R&D investments.
Goldman Sachs specifically listed the company’s rich clinical progress and global launch timelines for its pipeline products, including HANSIZHUANG® (serplulimab, anti-PD-1 mAb), HLX22 (novel epitope anti-HER2 mAb), and HLX13 (ipilimumab biosimilar), demonstrating the systematic and scaled advancement of the company’s global strategy.
Strong Financials and Ample Liquidity Provide Solid Foundation for Long-Term Development
Henlius' robust financial position and sufficient liquidity are key to supporting its long-term development. Goldman Sachs cited the company's latest financial data in its report, including cash reserves and diversified financing channels, affirming that the company possesses adequate financial strength to support the global clinical development and commercialization layout of its pipeline products. This assessment aligns with the views of international rating agencies, highlighting the prudence and efficiency of the company's financial management. Stable cash flow generation capabilities and a strong balance sheet enable Henlius to strike a sound balance between innovation investment and financial health, creating long-term value for shareholders.
Management Execution and Strategic Focus Win Market Confidence
The Goldman Sachs report implicitly acknowledges the execution capability and strategic focus of Henlius' management team. Facing a complex and volatile market environment, the management has focused on core businesses and demonstrated outstanding execution in global collaboration, regulatory approvals, and production operations. Henlius has established fully in-house facilities to support its commercial manufacturing and R&D pipeline. The current commercial capacity stands at 48,000 liters, distributed across its Xuhui facility (24,000L) and Songjiang 1st plant (24,000L). The Songjiang 2nd plant is undergoing further expansion, including a nearing-completion 36,000L phase and a planned additional 60,000L, bringing the total potential capacity to 144,000L. The company maintains high operational efficiency with a production success rate exceeding 98%, and had completed over 1,150 commercial GMP batches as of H1 2025.
Looking Ahead: Accelerating Value Realization, Leading Chinese Biopharma Innovation Globally
This "Buy" rating from Goldman Sachs represents another authoritative endorsement from the international capital markets regarding Henlius' long-term investment value. It is based not only on the company's existing financial fundamentals but also on strong expectations for the future realization of its innovative value. With the continuous readout of clinical data for core products like HLX43 and HANSIZHUANG®, ongoing communications with global regulators, and the successful launch of more products in major global markets, the company is expected to experience sustained valuation catalysts. Henlius will continue to adhere to its patient-centric mission, leveraging its integrated biopharma platform to deepen innovation and R&D. By collaborating with global partners, it aims to bring more high-quality, affordable biologics to patients worldwide. The company firmly believes that through continuous strategic focus and excellent execution, it will deliver long-term, stable returns to investors and contribute Chinese strength to global public health.