[Click eStock] "Hanmi Pharm Expects H2 R&D Results... Target Price Up 9%"

DB Financial Investment Report

[Asia Economy Reporter Minji Lee] On the 28th, DB Financial Investment maintained a buy rating on Hanmi Pharm, expecting strong R&D results in the second half of the year, and raised the target price by 9.3% from the previous level to 350,000 KRW.

In the first quarter, sales reached 321.1 billion KRW and operating profit was 38.7 billion KRW, increasing by 18.8% and 29.1% respectively compared to the same period last year. On a separate basis, technology fee revenue was 200 million KRW, but due to increased pharmaceutical consumption caused by the surge in COVID-19 cases, sales rose 15% to 226.6 billion KRW and operating profit increased 30.9% to 14.7 billion KRW during the same period. Beijing Hanmi saw sales and operating profit grow by 29.1% and 32.9% respectively, driven not only by seasonal factors but also by the expansion of syrup production facilities and growth in respiratory products.

Hanmi Pharm has a rich lineup of R&D events in the second half of the year. Approval announcement in the UK is expected for Oracsol (oral paclitaxel), whose U.S. new drug approval was delayed in the second quarter. After resolving the CRL for Rolontis (treatment for neutropenia) in March and resubmitting the new drug application to the U.S. FDA, new drug approvals are anticipated on September 9 for Rolontis and on November 24 for Poziotinib (HER2-targeted non-small cell lung cancer treatment) in the U.S.

Additionally, interim results from Phase 2 clinical trials of the NASH (non-alcoholic steatohepatitis) treatment pipeline, LAPS Triple Agonist (GLP/GSG/GIP) and LAPS Dual Agonist (GLP/GCG), which are progressing smoothly within the year, are also expected.

Myungseon Lee, a researcher at DB Financial Investment, said, “Even without scheduled technology fee revenue, the company’s performance and R&D are expected to improve due to normalization of operations and clinical research following COVID-19.” He added, “There is high anticipation for pipeline revaluation based on three upcoming U.S. and European new drug approval announcements and clinical results for NASH in the second half of the year.”

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