[Reporter’s View] Hanmi lands big deals after a long-term R&D commitment

News reporting the management control dispute at Hanmi Pharmaceutical, which spanned over two years, required meetings with numerous stakeholders. Although each individual had different rationales and strategic directions, they shared one principle: the 'Sung-ki Lim legacy.' Each claimed a commitment to upholding the vision of the late founding chairman Sung-ki Lim, at the core of which lay the ambition to develop innovative novel drugs through research and development (R&D) and build a pharmaceutical powerhouse.

​Examining Hanmi's recent history offers a clearer view of what this internally emphasized 'Sung-ki Lim legacy' represents. Even amid the ongoing management conflict, Hanmi sustained its R&D investments and did not halt progress on its core pipeline assets. Although the corporate governance dispute persisted, the company ultimately instituted a professional executive management structure, establishing a framework to refocus on novel drug development.

​The outcomes of this R&D focus are now shining. On the 24th, Hanmi concluded its second mega out-licensing agreement of the year. After out-licensing the long-acting GLP-2 analog 'sonepeglutide' to Eli Lilly in May, the company licensed its novel obesity and metabolic disease candidate 'HM17321' to Roche Group's Genentech. The combined deal value of the two transactions exceeds KRW 5 trillion.

Notably, the upfront payments are substantial. The upfront payment for the Genentech deal amounts to $190 million (KRW 262.9 billion), representing 8.2% of the total deal value. In its earlier agreement with Eli Lilly, Hanmi Pharm also secured $75 million (KRW 112.9 billion) upfront, accounting for approximately 6.0% of that contract. In this year alone, the upfront fees Hanmi secured across the two transactions have reached $265 million (KRW 375.8 billion). This upfront total surpasses Hanmi's entire operating profit for last year (KRW 257.8 billion) by 45.8%.

​Royalty and licensing sales also serve as financial resources for follow-on drug development. Last year, Hanmi's R&D expenditure reached KRW 229.0 billion. This represented 14.8% of Hanmi's total revenue and was the second-highest investment level among traditional domestic pharmaceutical companies, after Yuhan Corp. Backed by this R&D commitment, the company is also anticipating the commercialization of South Korea's first domestic GLP-1 class anti-obesity therapeutic, 'efpeglenatide,' in the second half of this year. In effect, Hanmi has established a virtuous cycle: reinvesting funds generated from out-licensing back into R&D to drive subsequent clinical and commercial milestones.

​In particular, Hanmi's latest mega-deal extends beyond positive news for an individual enterprise. The domestic pharmaceutical and biotech sector has been struggling with subdued investor sentiment and capital constraints. Moreover, as the market concentrated heavily on large-cap semiconductor equities, biotech shares were pushed out of the spotlight. Hanmi's case, where prolonged R&D commitment led to validation by global Big Pharma and substantial capital inflows, presents as a welcome signal for the broader industry.

Hanmi has faced some difficult times over the past decade. After a successful domestic pharmaceutical out-licensing deal with Eli Lilly in 2015, the company endured painful setbacks, including discontinued clinical programs and returned asset rights. Nevertheless, it used these setbacks as a springboard to rebuild, generating new milestones along the way. Perhaps the 'Sung-ki Lim legacy' has been translated into this continued drive to challenge obstacles. Expectations remain high that Hanmi will carry this vision forward and achieve even greater results.