[Click eStock] "Hanmi Pharm Posts Strong 2Q Results... R&D Expectations for 2H"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] DB Financial Investment announced on the 27th that it maintains a buy rating and a target price of 380,000 KRW for Hanmi Pharm. This is due to the company's strong performance in the second quarter and anticipated research and development (R&D) achievements in the second half of the year.

Hanmi Pharm's sales in the second quarter of this year reached 316.4 billion KRW, a 13.3% increase compared to the same period last year, and operating profit rose 97.5% to 31.4 billion KRW. Notably, operating profit exceeded DB Financial Investment's estimates for the second quarter, following the first quarter. On a standalone basis, steady growth continued thanks to the strong performance of self-developed improved drugs such as Rosuzet and the Amozaltan family, as well as the normalization of face-to-face sales activities.

In particular, Beijing Hanmi Pharm, the company's local subsidiary in China, achieved sales of 78.5 billion KRW, up 31.8% year-on-year, and operating profit of 17.1 billion KRW, an increase of 98.6%. Despite being an off-season, Beijing Hanmi Pharm accounted for 54% of consolidated operating profit due to the expansion effect of syrup products and the strong performance of respiratory products.

DB Financial Investment explained that the company’s R&D achievements in the second half of the year are highly anticipated. Two new drug approval announcements from the U.S. Food and Drug Administration (FDA) and the results of clinical phase 2a for a non-alcoholic steatohepatitis (NASH) treatment are expected in the second half of this year. The plan is to confirm superiority in reducing fatty liver in patients with non-alcoholic fatty liver disease (NAFLD).

Hanmi Pharm is also preparing to announce interim results of clinical phase 2b for the NASH treatment in the first half of next year. The fatty liver reduction effect was already confirmed in phase 2a, and this clinical trial will verify efficacy data on fibrosis reduction in NASH patients diagnosed by biopsy. DB Financial Investment analyzed that if statistical significance is secured through the clinical trial, global pharmaceutical companies are expected to take notice.

Lee Myungseon, a researcher at DB Financial Investment, said, "Among pharmaceutical companies, this is the company with the highest expectations for solid performance improvement and R&D events in the second half of the year," adding, "It is selected as the top pick for the second half due to the upcoming first U.S. new drug approval for Lab Discovery and the phase 2 clinical trial results announcement in the NASH field, where unmet medical needs are high."

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