Hanmi Pharmaceutical is up more than 11% in early trading. Buying is seen flocking in on news it signed a 1.9 trillion won technology transfer deal with global drugmaker Eli Lilly and Company (Lilly).
As of 9:18 a.m., Hanmi Pharmaceutical was trading at 549,000 won on the Korea Exchange, up 58,000 won (11.81%) from the previous session. Earlier in the premarket, it climbed to 638,000 won, hitting the upper price limit.
Hanmi Pharmaceutical said it signed a licensing agreement with Lilly for the development, manufacturing and commercialization of the bio new drug candidate "Sonefpeglutide (HM15912)." The deal is worth up to $1.26 billion (about 1.8973 trillion won), and Hanmi Pharmaceutical will receive a nonrefundable, firm upfront payment of $75 million (about 112.9 billion won).
It will receive up to an additional $1.185 billion (about 1.7844 trillion won) upon achieving clinical development, regulatory approval and commercialization milestones. Separately, it will also receive royalties (license fees) tied to sales after the product launch.
Under the deal, Hanmi Pharmaceutical will transfer exclusive rights for development, manufacturing and commercialization worldwide excluding Korea to Eli Lilly and Company.
Meanwhile, at the same time, Hanmi Science, the holding company of Hanmi Pharmaceutical, was also showing gains, trading at 33,200 won on the Korea Exchange, up 1,450 won (4.57%) from the previous session.