Hanmi Pharmaceutical has reached the upper limit on the stock market following news of a licensing agreement worth approximately 23 trillion won with Genentech, a subsidiary of the Roche Group, for an obesity drug candidate.
According to the Korea Exchange, as of 1:40 PM on August 24, Hanmi Pharmaceutical's stock rose by 124,500 won (29.96%) to 540,000 won. The surge followed the company's announcement at 11:14 AM that it had signed the licensing agreement.
Under this agreement, Hanmi Pharmaceutical grants Genentech exclusive rights for the research, development, manufacturing, and commercialization of HM17321, excluding South Korea.
The total value of the contract is $2.305 billion (approximately 31.892 trillion won). The upfront payment is $190 million (about 262.9 billion won), with milestone payments for clinical development, regulatory approval, and commercialization potentially reaching up to $2.115 billion (approximately 29.263 trillion won). Additionally, Hanmi will receive ongoing royalties based on annual net sales after the product is launched.
This technology transfer addresses growing concerns in the obesity treatment market regarding muscle loss during weight loss. Current leading obesity drugs in the GLP-1 class are effective for weight loss but have raised concerns about concurrent muscle loss.
HM17321 differs from existing treatments as it selectively activates the CRF2 receptor rather than directly stimulating GLP-1 receptors. It aims to reduce weight while preserving muscle mass and function, making it a promising candidate to overcome the limitations of current GLP-1 obesity treatments.
However, the agreement will only take effect once administrative procedures under the U.S. Hart-Scott-Rodino Act are completed. The milestone payments will depend on the achievement of specific conditions related to clinical trials, approvals, and commercialization, and royalties will vary based on actual sales performance.
* This article has been translated by AI.
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