The National Pension Service, a major player in the investment market, recently bought HanAll Biopharma(009420) shares. It reduced equity stakes in traditional drugmakers such as Dong-A ST(170900). It appears to have picked corporations expected to release research results in the second half or unveil new drugs.
◇ HanAll Biopharma to disclose rheumatoid clinical indicators in the second half
According to the Financial Supervisory Service's electronic disclosure system on the 14th, the National Pension Service increased its equity stake in HanAll Biopharma, an affiliate of Daewoong Pharmaceutical(069620), from 10.05% on Apr. to 10.84% last month, up 0.79 percentage points. A HanAll Biopharma official said, "We plan to announce the topline of key indicators from clinical trials of imsidropruvart, a candidate treatment for autoimmune diseases, in the second half," adding, "It appears this was reflected."
Imsidropruvart is being developed for prescription to patients with six autoimmune diseases, including refractory rheumatoid arthritis, cutaneous lupus erythematosus, and Graves' disease. Rheumatoid arthritis occurs when the body's immune system attacks the synovium surrounding the joints, causing inflammation and pain. Lupus presents with skin inflammation, and Graves' disease is a condition in which thyroid hormones are secreted excessively.
Imsidropruvart will announce indicators for refractory rheumatoid arthritis and cutaneous lupus erythematosus in the second half of this year, and phase 2b indicators for Graves' disease next year. If there are no particular issues with the final results, the goal is to obtain marketing approval and other clearances and to launch the first new drug for Graves' disease in early 2028.
Earlier, HanAll Biopharma transferred imsidropruvart to global drugmaker Roivant in 2017. Roivant's subsidiary Immunovant is in charge of development, while HanAll Biopharma receives milestones (technology fees) and royalties (a portion of sales revenue).
The National Pension Service also held 10.11% equity in Hanmi Pharmaceutical(128940) in early last month. It later expanded the stake to 10.30% through open-market purchase.
The National Pension Service's equity stake in Hanmi Pharmaceutical fell from the 11% range in Dec. last year to the 9% range in May this year, then began rising again. Hanmi Pharmaceutical aims to unveil Efpeglenatide, a weight-loss drug tailored for Koreans, within the year. With relatively fewer side effects such as vomiting, the company expects an improvement in earnings.
◇ Dong-A ST, HK inno.N… successive weighting cuts
The National Pension Service has been steadily reducing equity in traditional drugmakers. It cut its stake in Dong-A ST from 5.78% in Nov. last year to 4.78% last month, down 1 percentage point. The equity weighting in HK inno.N(195940) fell from 5.12% in Jul. last year to 4.06% in May this year. Stakes in Chong Kun Dang pharmaceutical(185750) (7.35% in Aug. last year → 6.34% in Apr. this year) and GC 녹십자 (7.69% in Dec. last year → 6.68% in May this year) also declined.
Earlier, Dong-A ST halted development of candidate substances for an overactive bladder treatment (DA-8010) and an anticancer treatment (AFM32), disappointing investors. The bladder treatment showed no meaningful results in phase 3 in Aug. 2024, and the partner for the anticancer treatment filed for bankruptcy in May last year.
A Dong-A ST official said it was a "selection and concentration strategy," adding, "We are currently developing candidate substances for dementia treatments, immuno-oncology drugs, and antibody-drug conjugates (ADCs)."
In the case of HK inno.N, its third-generation gastrointestinal drug K-CAB has captured market share, posting 45.6 billion won in sales in the first quarter of this year. However, competition from latecomers is intense, including Daewoong Pharmaceutical's Fexuclu and JEIL PHARMACEUTICAL(271980)'s Ja Q Bo. The company is developing candidate substances for obesity and atopic dermatitis treatments. An HK inno.N official noted, "Foreign ownership has instead increased from the 8% range in Jan. this year to the 14% range recently."
The National Pension Service's fund is estimated at about 1.6 quadrillion won. The National Pension Service's investment tendencies can help forecast mid- to long-term corporate value.
Hong Chun-uk, head of Prism Investment Advisory and former head of investment management at the National Pension Service, said, "The National Pension Service tends to have a high win rate," adding, "It appears to have reduced the weighting of drugmakers while concentrating on semiconductor corporations this time." Still, because the National Pension Service invests for the long term across numerous stocks, some say individuals should decide cautiously rather than chase excessively.