DS Investment Securities Raises Hanmi Pharmaceutical's Target Price Following Genentech Deal

 
DS Investment Securities raised Hanmi Pharmaceutical's target price to 720,000 won on August 25. The firm anticipates that the upcoming domestic approval and launch of the obesity treatment epaglenatide, along with the results from the Phase 1 trial of HM17321 and Phase 2 trial of HM15275, will contribute to an increase in the company's value.
 
According to DS Investment Securities, Hanmi Pharmaceutical signed a technology transfer agreement with Genentech the previous day for the global rights to HM17321. The deal is valued at approximately 3.1892 trillion won, including an upfront payment of about 262.9 billion won, with additional royalties to be paid.
 
HM17321 is a UCN2 analog that selectively acts on CRFR2. It is being developed as a next-generation treatment in the obesity market, aimed not only at weight loss but also at preserving or increasing muscle mass. The Phase 1 SAD trial is currently underway.
 
Kim Min-jung, a researcher at DS Investment Securities, noted that the successful technology transfer increases the likelihood of positive results from the Phase 1 trial of HM17321. Consequently, the pipeline value of HM17321 has been estimated at approximately 1.3315 trillion won and newly reflected in Hanmi Pharmaceutical's overall valuation.
 
Genentech's acquisition of HM17321 is seen as a strategic move to build a diverse treatment portfolio centered around GLP-1 class obesity treatments. Roche and Genentech anticipate that the obesity treatment market will expand into various segments and are actively developing their portfolio.
 
Kim stated that the current valuation of HM17321 is limited to its role as a GLP-1 adjunct therapy, but there is potential for additional value to be assigned based on future clinical data, particularly as a standalone body composition improvement treatment and a foundational substance for next-generation obesity therapies. Additionally, the upcoming launch of the obesity treatment epaglenatide by Hanmi Pharmaceutical in the fourth quarter is also noteworthy.
 
However, the underperformance of Hanmi's Chinese subsidiary, Beijing Hanmi, is considered a variable. Kim suggested that if Beijing Hanmi's performance normalizes, it could further enhance Hanmi Pharmaceutical's overall value.