Hanmi Pharmaceutical is seeing a robust 9% surge in its stock price, fueled by anticipation surrounding its next-generation obesity drug. The company’s shares have shown increased volatility following a major technology export deal.
As of 9:32 a.m. (Korean time) on Wednesday, Hanmi’s stock was trading at 550,000 KRW (about 398 USD), up 49,000 KRW (about 36 USD) (9.78%) from the previous day’s close.
After hitting the upper limit of 540,000 KRW (about 391 USD) on Monday, Hanmi’s shares retreated 7.22% to close at 501,000 KRW (about 363 USD) the following day due to profit-taking. Today’s rebound is attributed to renewed optimism about the company’s obesity drug pipeline.
On Monday, Hanmi disclosed that it had inked a technology export agreement for its obesity drug candidate HM17321 with Genentech, a subsidiary of global pharmaceutical powerhouse Roche.
The deal could potentially be worth up to 2.3 billion USD, with Hanmi receiving a non-refundable upfront payment of 190 million USD. The company will also be entitled to additional sales royalties once the product is commercialized.
Wall Street analysts believe this agreement will trigger a reassessment of Hanmi’s obesity drug pipeline value. Korea Investment & Securities has set a target price of 810,000 KRW (about 587 USD), while NH Investment & Securities and Mirae Asset Securities have revised their targets to 760,000 KRW (about 551 USD) and 730,000 KRW (about 529 USD), respectively.