Korea Investment & Securities Co. on the 2nd said it expects Eli Lilly and Company, which signed a technology transfer agreement with Hanmi Pharmaceutical, to develop sonepeglutide as a treatment for inflammatory bowel disease (IBD). It maintained a BUY rating and raised its target price to 740,000 won from 660,000 won. The previous session's closing price was 539,000 won.
Hanmi Pharmaceutical on the 1st disclosed that it signed a technology transfer agreement with Eli Lilly and Company worth a total of $1.26 billion (about 1.8973 trillion won). The nonrefundable upfront payment under this agreement amounts to 112.9 billion won. The pipeline subject to the contract is the GLP-2R agonist sonepeglutide, a pipeline that applies Hanmi Pharmaceutical's half-life extension platform LAPSCOVERY.
Wi Hae-ju, an analyst at Korea Investment & Securities Co., said, "The GLP-2R agonist sonepeglutide is currently in a global phase 2 study for patients with short bowel syndrome," and noted, "In nonclinical animal models, it showed potential for expanding the indication to inflammatory bowel disease."
The analyst said, "There had been market chatter recently building expectations for a technology transfer, but the fact that the asset is sonepeglutide and that the counterparty is Eli Lilly and Company is a surprise."
The analyst observed that Eli Lilly and Company is highly likely to develop sonepeglutide as an IBD treatment.
The analyst said, "Among GLP-2R agonists, it is the only once-monthly formulation and, with its long half-life, should provide sufficient activity for intestinal mucosal regeneration and anti-inflammatory effects," adding, "Eli Lilly and Company also saw the potential in nonclinical animal study results."
The IBD market is projected to reach $42.9 billion by 2032. According to the analyst, there has been no new drug with a mechanism that regenerates the intestinal mucosa like a GLP-2R agonist.
The analyst said, "In particular, HM19321, a UCN2 agonist, is currently in phase 1, and nonclinical results are expected to be presented at the ADA meeting on the 5th," adding, "If safety is confirmed after the trial ends at the end of this year, the visibility of a technology transfer could increase."