Hanmi Pharm Makes Strategic Investment of 24 Billion KRW in US Partner Spectrum

Hanmi Pharm Headquarters View (Photo by Hanmi Pharm)

[Asia Economy Reporter Chunhee Lee] Hanmi Pharmaceutical has made a strategic equity investment worth 24 billion KRW in its U.S. partner Spectrum. Spectrum is developing the innovative anticancer new drugs ‘Poziotinib’ and ‘Rolontis,’ which Hanmi Pharmaceutical licensed out, and Hanmi Pharmaceutical has also decided to revise the milestone and royalty terms of the two contracts to strengthen Spectrum’s business capabilities.

Hanmi Pharmaceutical announced on the 5th that it signed a contract to acquire Spectrum shares worth 24 billion KRW at $1.6 per share (approximately 1,914 KRW) to secure the future value of the two innovative anticancer drugs under development by Spectrum and to build a solid partnership with the partner company. With this contract, Hanmi Pharmaceutical’s stake in Spectrum will expand to about 10%.

Along with this, Hanmi Pharmaceutical revised the milestone and royalty terms of the technology licensing contracts for Poziotinib and Rolontis with Spectrum. The changes reduce Spectrum’s commercialization cost burden and shift to a model where both companies broadly share the revenue generated from the sales of the two products in the U.S. Previously, Hanmi Pharmaceutical completed Phase 1 clinical trials for Poziotinib in 2015 and Rolontis in 2017 before licensing them out to Spectrum.

Under the revised contract, Hanmi Pharmaceutical will adjust the milestone payments it receives from Spectrum upon U.S. approval of Rolontis to ‘additional royalties,’ which will be received annually. Royalties will be maintained at a double-digit percentage of annual net sales until the total royalty payments reach the previous milestone amount, after which the rate will be adjusted to a single-digit percentage. Additionally, the supply cost of Rolontis produced by Hanmi Pharmaceutical and supplied to Spectrum will be rationalized. Hanmi Pharmaceutical explained that this decision is to support Spectrum’s aggressive marketing and successful commercialization.

Hanmi Pharmaceutical will also change the milestone payments for Poziotinib, which are received upon approval, to be offset by additional royalties. Poziotinib royalties will be maintained at a high double-digit percentage of annual net sales and lowered to the mid-double-digit range once the milestone amount is met.

Tom Lee, President of Spectrum, said, “This investment signifies the strengthening of our partnership with Spectrum,” and added, “We look forward to achieving our shared goals of FDA approval and successful commercialization of Rolontis and Poziotinib through continued partnership with Hanmi Pharmaceutical.”

Hanmi Pharmaceutical President Sechang Kwon also said, “This investment was decided based on trust in Spectrum’s strategic direction,” and added, “Cooperation with Spectrum is one of Hanmi Pharmaceutical’s core drivers for future growth and an important factor for the successful entry of Rolontis and Poziotinib into the U.S. market.”

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