Hanmi Pharmaceutical (128940.KS) has signed a 1.9 trillion won licensing agreement with U.S.-based Eli Lilly, and securities analysts are now focusing on the possibility of additional licensing deals this year.
Hana Securities maintained its "buy" rating on Hanmi Pharmaceutical in a report Wednesday and raised its target price to 710,000 won from 640,000 won. The revision came after reassessing the company's pipeline value to reflect the recently signed licensing agreement with Lilly for sonepeglutide, a GLP-2-based drug candidate.
Hanmi Pharmaceutical disclosed that it signed a licensing agreement with Lilly for sonepeglutide worth up to $1.26 billion (about 1.9 trillion won) on June 1. The upfront payment is $75 million (about 113 billion won). The candidate is currently being developed as a treatment for short bowel syndrome and is a GLP-2 class drug that can be administered once a month.
Hana Securities described the agreement as a "surprise deal" that exceeded market expectations. The firm explained that despite short bowel syndrome treatment being a rare disease area with a relatively small market size, the deal reached 1.9 trillion won, and it is estimated that the potential for developing additional indications was likely included.
Analysts believe this licensing deal is not the end. With Hanmi Pharmaceutical having presented licensing as a key management goal since the start of the year, they say the possibility of additional contracts remains. Hana Securities cited the triple-action obesity drug HM15275, the muscle-building obesity drug HM17321, and a treatment for congenital hyperinsulinism as strong candidates with potential for additional licensing.
Expectations are particularly high for HM17321. HM17321 is being developed as a next-generation muscle-building agent that minimizes muscle loss during weight loss, and it has already completed single-dose trials. Hana Securities forecast that related data disclosure events could take place as early as July or August.
"The competitiveness of Hanmi Pharmaceutical's obesity and metabolic disease pipeline remains high," said Kim Sun-ah, an analyst at Hana Securities. "The sonepeglutide licensing deal could also accelerate discussions on additional business development (BD)."
