KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
Chinese drugmaker Jiangsu Hengrui Pharma (01276.HK) has signed a major deal with GlaxoSmithKline (GSK.US) to co-develop up to 12 drug programs, in what analysts call one of the largest agreements in Chinese pharma history.
Key Details:
GSK receives an exclusive global licence for Hengrui’s enzyme inhibitors in clinical trials for lung disease, excluding China, Hong Kong, Macau and Taiwan.
The companies will collaborate on up to 11 additional programs. Hengrui will lead development through Phase 1, with GSK taking over for later stages and commercialization.
Financials: $500 million upfront payment; potential to earn up to $12 billion plus royalties if all programs reach development and commercial milestones.
Strategic Impact:
The deal underscores growing global interest in China’s drug innovation pipeline.
Citi analysts note this could be the largest licensing deal ever for a Chinese biotech, reinforcing Hengrui’s position as a global player.
Market Reaction:
Hengrui Pharma’s Hong Kong-listed shares surged over 15%.
Citi maintains a Buy rating with a 123 yuan target price, citing potential recurring revenue if Hengrui continues to monetize its extensive drug pipeline.
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