[Click eStock] "Hanmi Pharm, Pipeline Treatment Effect Expected... Earnings Upward Revision"

[Asia Economy Reporter Minji Lee] Korea Investment & Securities maintained a buy rating and a target price of 380,000 KRW for Hanmi Pharm on the 11th. This reflects the upward revision of earnings and expectations for the positive therapeutic efficacy of the ongoing pipeline.

Hanmi Pharm's third-quarter sales are expected to be 341 billion KRW, with an operating profit of 41.2 billion KRW. These figures represent increases of 12.5% and 11.7%, respectively, compared to the same period last year. They also exceed market expectations by 4.9% and 16.7%, respectively.

The sales growth appears to be driven by high-margin prescription drugs. Sales of Rosuzet reached 35.7 billion KRW, up 35.8% year-on-year. Oh Eerim, a researcher at Korea Investment & Securities, stated, “The long-term efficacy results of Rosuzet, published in the prestigious medical journal The Lancet last July, are based on a large-scale clinical trial involving more than 3,000 patients, which likely had a positive impact on sales.”

The sustained growth in performance of Beijing Hanmi Pharm was also positive. Based on the brand image established during the pandemic, Beijing Hanmi Pharm is estimated to record separate sales of 90.4 billion KRW and operating profit of 22.1 billion KRW, representing increases of 19.9% and 14.5% year-on-year, respectively.

The core of Hanmi Pharm's performance growth is its technological capability. On the 9th of last month, Rollontis received FDA approval for marketing. Although competition has intensified due to existing generic drugs, this approval signifies recognition of its technology.

However, concerns arose when the FDA advisory committee issued a negative opinion on Poziotinib on the 21st of last month. The PDUFA decision scheduled for the 24th of next month is also expected to be negative.

Researcher Oh Eerim analyzed, “Although additional approval applications are expected, delays due to ongoing phase 3 clinical trials are inevitable. However, while Poziotinib's value was not significant, Rollontis directly supplies raw materials, so in addition to royalty income, orders for raw material production will also boost earnings.”

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