Hanmi Pharmaceutical is experiencing a nearly 10% drop in its stock price despite receiving domestic approval for its obesity treatment drug. The decline follows a period of rising expectations leading up to the approval, with investors now cashing in on profits.
As of 12:53 PM on October 8, Hanmi's shares were trading at 482,000 won, down 52,000 won (9.74%) from the previous trading day, according to the Korea Exchange.
The stock had been on an upward trend ahead of the drug's approval, rising to 506,000 won on October 2, 523,000 won on October 6, and 534,000 won on October 7. It briefly peaked at 565,000 won earlier in the day before reversing course and falling sharply.
On October 7, the Ministry of Food and Drug Safety approved Hanmi's 'Epeo Injector (Epeglanatide)' as the 45th domestically developed new drug and the first domestic GLP-1 class obesity treatment. The approved dosages are 2 mg, 4 mg, 6 mg, 8 mg, and 10 mg. Hanmi aims to commercialize the drug in South Korea by the end of the year.
Epeglanatide is an injectable medication designed for chronic weight management in adults with obesity or overweight who do not have diabetes. It works by acting on GLP-1 receptors to suppress appetite and delay gastric emptying, promoting a feeling of fullness. The domestic obesity treatment market is currently dominated by Novo Nordisk's 'Wegovy' and Eli Lilly's 'Mounjaro,' and the entry of a domestic drug is expected to intensify competition.
Jung Jae-won, a researcher at iM Securities, maintained a 'buy' rating on Hanmi and raised the target price from 600,000 won to 650,000 won. This adjustment reflects the newly assessed value of the obesity drug candidate HM17321 (LA-UCN2), which was licensed to Genentech in August. HM17321 was designed and optimized using Hanmi's AI platform 'HARP-pSAR' and is part of a technology transfer agreement worth $2.3 billion with Genentech.
Jung noted that the upcoming domestic launch of Epeglanatide is a key event for the remainder of the year, highlighting the potential for market share expansion through competitive pricing. He also pointed out that additional contracts or clinical advancements in Hanmi's diversified obesity-related pipeline, including the triple-action drug HM15275 and MSD's developing candidate epinofegdutide, could serve as further momentum for the stock.
* This article has been translated by AI.
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