Hanmi Pharm Soars 30% on $2.3 Billion Genentech Obesity Drug Deal

Hanmi Pharm shares surged 30% on Monday after the South Korean pharmaceutical company signed an exclusive licensing agreement with Genentech, a member of the Roche Group, for its experimental obesity drug HM17321.

Under the agreement, Genentech will receive exclusive worldwide rights to develop, manufacture and commercialize HM17321, excluding South Korea. Hanmi Pharm will receive an upfront payment of $190 million as part of the partnership.

The potential total value of the licensing deal could reach approximately $2.3 billion if certain development, regulatory and commercial milestones are achieved. Hanmi could also receive tiered royalties based on future sales of HM17321, according to a statement from the companies.

The agreement represents a significant opportunity for Hanmi Pharm as pharmaceutical companies race to develop new obesity treatments amid strong global demand for weight-loss therapies.

HM17321 is a UCN2, or urocortin-2, analog that uses a non-incretin mechanism of action. Unlike widely used GLP-1-based obesity treatments, the experimental therapy targets a different biological pathway.

Hanmi Pharm has described HM17321 as a potential first-in-class obesity treatment designed to support weight reduction while preserving lean body mass. Maintaining muscle during weight loss has become an important area of research as drugmakers work to improve the effectiveness and long-term benefits of obesity therapies.

Preclinical studies have shown that HM17321 can reduce weight when administered as a standalone treatment. The drug has also demonstrated weight-loss effects when combined with GLP-1-based therapies, potentially opening the door to combination treatment strategies.

The Genentech licensing agreement provides HM17321 with the backing of Roche's global drug development and commercialization network while allowing Hanmi Pharm to retain rights to the treatment in South Korea.

Investor enthusiasm over the deal sent Hanmi Pharm shares up 30%, reflecting expectations that HM17321 could become a significant contender in the rapidly expanding global obesity drug market.