Shinhan Investment Corp. announced on August 27 that it has raised its target price for Hanmi Pharmaceutical from 510,000 won to 650,000 won, an increase of 27.5%, following the large-scale technology export of an obesity drug candidate. The investment recommendation remains a 'buy.'
Lee Ho-cheol, a researcher at Shinhan Investment, stated, "The technology export of HM17321 has confirmed big pharmaceutical companies' interest in next-generation obesity treatments. A reevaluation of Hanmi Pharmaceutical's entire obesity treatment pipeline is expected."
On August 24, Hanmi Pharmaceutical exported the technology for its muscle-preserving obesity drug candidate HM17321 to Genentech, a subsidiary of Roche. The total contract value is $2.305 billion (approximately 3.2 trillion won), with an upfront payment of $190 million (about 270 billion won). The upfront payment represents 8.2% of the total contract value, exceeding the average of 4% for technology exports from domestic pharmaceutical companies to big pharma.
This contract has also heightened expectations for additional technology exports of Hanmi Pharmaceutical's other obesity drug candidates. HM15275, currently undergoing global Phase 2 clinical trials, and the myostatin inhibitor HM-500197 are being discussed as potential candidates for further technology exports.
The researcher noted, "The H.O.P obesity project has begun to be validated through big pharma, and the potential for additional technology exports of HM15275 and HM-500197 has increased."
Shinhan Investment has newly reflected the new drug value of HM17321 at 1.7 trillion won, raising the total new drug value for Hanmi Pharmaceutical to 4.9 trillion won. The upfront payment from this technology export contract is expected to be reflected in the company's performance in the fourth quarter, and additional milestone payments are anticipated when Roche enters global Phase 2 clinical trials in 2027.
* This article has been translated by AI.
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