Hanmi Pharmaceutical(128940) beat market expectations in the second quarter on strong global technology transfer revenue and robust sales of key prescription drugs. Profitability improved significantly as the upfront payment from Eli Lilly and Company for the obesity drug technology transfer was reflected.
Hanmi Pharmaceutical on the 28th announced consolidation-based second-quarter revenue of 467.2 billion won and operating profit of 131.1 billion won. Compared with the same period a year earlier, revenue rose 29.3% and operating profit jumped 116.9%. Net profit increased 95.5% to 84.1 billion won.
Cumulative first-half revenue was 860.2 billion won and operating profit was 184.7 billion won, up 14.4% and 54.6%, respectively, from a year earlier. The company expects to achieve a record annual revenue this year as well.
Technology export revenue had a major impact on the improved results. Hanmi Pharmaceutical said part of the upfront payment from the technology transfer deal for the obesity drug candidate "sonepeglutide," signed with Eli Lilly and Company last year, was reflected in this quarter's results. In addition, increased sales of key prescription drugs, including the dyslipidemia treatment "Rosuzet," and expanded co-promotion with global pharmaceutical companies also supported performance.
The domestic prescription drug business also maintained steady growth. According to UBIST, a pharmaceutical market research firm, first-half out-of-hospital prescription revenue reached 561.6 billion won. The company has maintained the No. 1 position in domestic out-of-hospital prescription revenue for eight consecutive years since 2018.
By product, Rosuzet's second-quarter out-of-hospital prescription revenue was 61.6 billion won, up 10.1% from a year earlier. The hypertension treatment "Amosartan Family" posted 37 billion won, and the gastroesophageal reflux disease treatment "Esomezol Family" recorded 14.6 billion won in prescriptions.
Affiliate results were mixed. Beijing Hanmi Pharmaceutical, the China subsidiary, saw second-quarter revenue fall to 60.7 billion won due to China's centralized drug procurement policy, decreasing from a year earlier. In contrast, active pharmaceutical ingredient (API) affiliate Hanmi Fine Chemical increased revenue 4.4% to 24 billion won on stronger exports to Japan and growth in new CDMO orders, while operating profit rose 76.7%.
Hanmi Pharmaceutical also invested 60.3 billion won in research and development (R&D). That is 12.9% of second-quarter revenue. The company is developing a pipeline of more than 30 new drugs in obesity and metabolic diseases, rare diseases, and oncology.
Development of obesity treatments is also gaining speed. While pushing to commercialize the GLP-1 class obesity drug "Efpeglenatide" within the year, the triple-acting obesity treatment "HM15275" is in a Phase 2 trial in the United States, and "HM17321," aimed at boosting muscle mass, is in a Phase 1 trial in the United States.
Holding company Hanmi Science also saw improved second-quarter results. Hanmi Science posted consolidation-based second-quarter revenue of 367.9 billion won and operating profit of 59.1 billion won. Compared with a year earlier, revenue rose 8.7% and operating profit increased 70.9%. Net profit climbed 54.2% to 43.7 billion won.
Cumulative first-half revenue was 721.6 billion won, up 7.6% from a year earlier, with operating profit of 92.7 billion won and net profit of 86 billion won.
Growth at Online Pharm, the pharmaceutical distribution affiliate, contributed to the improved results. Online Pharm recorded second-quarter revenue of 305.7 billion won on expanded distribution of prescription drugs, and profitability also improved as part of Hanmi Pharmaceutical's technology export performance was reflected, the company said.
Hanmi Science is also expanding its consumer healthcare business, including medical devices, health functional foods, and cosmetics. The company recently launched the health functional food brand "NPLE" and the dermacosmetic brand "ADESII" as it moves to diversify its business portfolio.