Hanmi Pharmaceutical rose sharply early on the 2nd. Buying is seen as flocking to the stock on news that it signed a technology transfer deal worth a total of $1.26 billion (about 1.8973 trillion won) with U.S. drugmaker Eli Lilly and Company.
As of 9:15 a.m. on the 2nd, Hanmi Pharmaceutical was trading at 548,000 won on the Korea Exchange, up 9,000 won (1.67%) from the previous session's close. Right after the open, it touched 578,000 won, up 7.23%, before paring gains.
The reason Hanmi Pharmaceutical is strong in early trading appears to be the news of the recent contract signed with Eli Lilly and Company.
In the securities industry, target prices are being raised one after another on the view that Eli Lilly and Company is highly likely to develop sonepegloitide as an IBD treatment.
Wi Hae-joo, a researcher at Korea Investment & Securities Co., said, "There had been expectations in the market of a technology transfer, but the fact that the asset is sonepegloitide and the counterparty is Eli Lilly and Company is a surprise," and noted, "Eli Lilly and Company is highly likely to develop sonepegloitide as an IBD treatment."
Korea Investment & Securities Co. raised its target price to 740,000 won from 660,000 won. KB Securities lifted its target to 630,000 won from 520,000 won, and Samsung Securities raised its target to 740,000 won from 680,000 won.