UBS has issued a research report noting that Hansoh Pharma's (03692) B7-H3-targeted antibody-drug conjugate (ADC), Ris-Rez, demonstrated positive results in a Phase 3 study for treating relapsed small cell lung cancer (SCLC). The treatment showcased improved survival rates and tumor control, along with fewer treatment-related adverse events, presenting an encouraging efficacy profile when compared against the control group.

The firm has assigned a "Buy" rating to Hansoh Pharma with a target price of HK$50.8. UBS highlighted that the New Drug Application (NDA) for Ris-Rez in SCLC has been accepted by the NMPA and granted priority review status. The bank anticipates that this study will bolster the company's commercialization efforts in China and further solidify the clinical validation of its ADC platform.

However, UBS also pointed out that with intensifying competition in the B7-H3 ADC space, product differentiation remains an area that needs to be established.