HLB "Hansoh Pharma's Rivoceranib Sales Increased Last Year... Royalties Expected to Rise"

[Asia Economy Reporter Yoo Hyun-seok] HL Biopharma announced on the 25th that Hansoh Pharmaceutical's revenue from Rivoceranib increased by approximately 20% compared to the previous year, and royalty income is also expected to increase significantly.

HL Biopharma acquired the global rights to Rivoceranib (Chinese name Apatinib), including China, from the US-based Advanchen Institute. HL Biopharma will receive royalties from Hansoh Pharmaceutical starting this year based on last year's sales.

According to IQVIA data, Rivoceranib sales in 2019 reached approximately 370 billion KRW (2.1 billion CNY), a roughly 20% increase from the previous year, and the royalties HL Biopharma will receive starting this year are expected to be substantial.

Having completed the global Phase 3 trials of Rivoceranib and currently preparing the NDA, HL Biopharma has secured a stable cash flow through royalty receipts starting this year. The company expects this to greatly aid its future bio-business operations.

In particular, Hansoh Pharmaceutical recently applied for marketing approval from the National Medical Products Administration (NMPA) of China for Rivoceranib as a second-line treatment for liver cancer. Additionally, multiple clinical trials for the commercialization of Rivoceranib are underway, including combination therapies with Iressa (Gefitinib) and Camrelizumab (PD-1 antibody) as a first-line treatment for non-small cell lung cancer, as well as Phase 3 trials for triple-negative breast cancer, HER2-negative breast cancer, and ovarian cancer. HL Biopharma's royalty income is expected to increase significantly with future indication expansions and sales growth.

An HL Biopharma official stated, "Since we have acquired all rights to Rivoceranib, including China, the increase in Hansoh Pharmaceutical's sales directly translates into HL Biopharma's royalty income. We look forward to maintaining a close cooperative relationship with Hansoh Pharmaceutical and will focus on the ongoing NDA and additional indication clinical trials for Rivoceranib."

According to Hansoh Pharmaceutical's business report, sales in 2019 were 23.3 billion CNY, a 33.7% increase from the previous year, with oncology drug sales reaching 10.6 billion CNY, up 43% year-on-year. Rivoceranib accounted for approximately 10% of Hansoh Pharmaceutical's total sales with 2.1 billion CNY. Rivoceranib was approved as a third-line treatment for gastric cancer and has been included in China's national medical insurance since 2017.

This content was produced with the assistance of AI translation services.