Hanmi Pharmaceutical has licensed out a next-generation obesity drug candidate, designed to reduce weight while increasing muscle mass, to Genentech, a subsidiary of global pharmaceutical group Roche, in a deal worth up to USD 2.3 billion (approximately KRW 3.2 trillion). This is the largest technology export contract ever signed by a Korean pharmaceutical or biotech company for a single drug candidate. A Korean company has effectively joined forces with a global pharmaceutical firm in the race to develop “post-Mounjaro” obesity drugs. The biopharmaceutical industry is watching closely to see whether this drug candidate, which acts via a different mechanism from existing obesity treatments, can address “muscle loss,” a limitation often cited for current therapies.

● KRW 260 billion in upfront payment alone… Global rights excluding Korea transferred

Hanmi Pharmaceutical announced on the 24th that it has signed an exclusive license agreement with Roche Group subsidiary Genentech for the obesity drug candidate “HM17321.” Genentech will hold exclusive rights to develop, manufacture, and commercialize HM17321 worldwide, excluding Korea. The upfront payment Hanmi will receive is USD 190 million (approximately KRW 263 billion). If clinical development, regulatory approvals, and commercialization milestones are achieved, the total contract value could increase to as much as USD 2.3 billion through additional milestone payments. Once the product is launched, Hanmi will also receive royalties based on sales.

This contract is regarded as the largest technology export deal in Korea’s pharmaceutical and biotech sector based on a single drug candidate. HM17321, acquired by Genentech, is an early-stage drug currently undergoing Phase 1 clinical trials in the United States. Once Hanmi completes Phase 1, Genentech will take over development from Phase 2 onward. Analysts note that the multi-trillion-won deal was concluded even before the drug’s efficacy in humans has been fully verified, indicating a high valuation of the candidate’s potential. Hanmi stated, “For domestic pharmaceutical and biotech companies, upfront payments typically account for about 1–3% of the total contract value in licensing deals, but in this case the ratio is as high as 8%, reflecting the high quality of this technology export.”

● Lose fat, preserve muscle… A different strategy from GLP-1

The key feature of HM17321 is that its mechanism of action differs from that of existing obesity treatments. Unlike GLP-1–based drugs such as Wegovy and Mounjaro, which induce weight loss mainly through appetite suppression, HM17321 is based on a “UCN2 analog.” The development goal is a “first-in-class” drug that selectively reduces fat while maintaining muscle mass and muscle function. GLP-1 therapies have been criticized for the limitation that, despite strong weight-loss effects, they may also reduce muscle mass.

According to Hanmi, non-clinical studies have confirmed weight-loss and body-composition improvement effects when HM17321 is administered alone or in combination with a GLP-1 therapy. As it is being developed as a peptide-based treatment, there is potential for it to be co-administered with GLP-1 drugs or developed as a combination product in the future. The ongoing Phase 1 trial is assessing safety and other parameters in healthy adults and patients with obesity.

Jung Yoon-taek, head of the Korea Pharmaceutical Industry Strategy Research Institute, said, “For next-generation therapies, the ability to preserve muscle during the weight-loss process is emerging as a key differentiating factor,” adding, “As HM17321 has emerged as a candidate to address this issue, whether non-clinical results are replicated in clinical trials involving actual patients will be crucial for assessing its future value.” Meanwhile, Hanmi Pharmaceutical’s share price on the stock market hit the upper price limit on the day, rising 29.96% from the previous trading session on expectations related to the licensing deal.

Popular News