Hanmi Pharmaceutical reported Q2 operating profit of 131.1 billion won, meeting market expectations, the company disclosed on the 28th. The 116.9% year-over-year increase was driven by recognition of upfront payments from Eli Lilly's sonepeglutide technology transfer agreement and continued growth of domestic drug sales including Rosuzet. The South Korean pharmaceutical company invested 60.3 billion won in R&D during the quarter, representing 12.9% of revenue, while maintaining momentum in its global licensing strategy and domestic prescription drug portfolio.
Hanmi Pharmaceutical Reports 467.2 Billion Won Q2 Revenue
Hanmi Pharmaceutical [128940] disclosed on the 28th that Q2 consolidated revenue, operating profit, and net profit reached 467.2 billion won, 131.1 billion won, and 84.1 billion won respectively. Revenue increased 29.3% year-over-year, while operating profit grew 116.9% and net profit rose 95.5%.
The results matched market forecasts compiled by Yonhap Infomax from 10 major domestic securities firms, which projected Q2 revenue of 466.9 billion won and operating profit of 125.8 billion won. First-half cumulative performance showed consolidated revenue of 860.2 billion won and operating profit of 184.7 billion won, up 14.4% and 54.6% respectively from the prior-year period.
The company stated it expects to achieve record annual sales since its founding based on the sustained growth trajectory.
Eli Lilly Technology Transfer Drives Operating Profit Growth
Hanmi Pharmaceutical attributed the strong performance to steady growth of key products including Rosuzet, increased sales from expanded co-promotion agreements with global pharmaceutical companies, and recognition of upfront payments received from Eli Lilly for the sonepeglutide technology transfer.
The company recorded first-half out-of-hospital prescription sales (UBIST basis) of 561.6 billion won.
Rosuzet Prescription Sales Reach 61.6 Billion Won in Q2
Rosuzet, a combination drug for dyslipidemia treatment, generated Q2 out-of-hospital prescription sales of 61.6 billion won, up 10.1% year-over-year. The hypertension product family Amosartan recorded 37 billion won in sales, while the gastroesophageal reflux disease product family Esomezole achieved 14.6 billion won.
Hanmi Fine Chemical, the API-specialized affiliate, posted Q2 sales of 24 billion won, up 4.4% year-over-year. Operating profit increased 76.7% from the prior-year period due to increased API exports to Japan and expanded new orders for high-margin CDMO services.
Beijing Hanmi Faces Revenue Decline Amid Procurement Policy Impact
Beijing Hanmi Pharmaceutical, the Chinese subsidiary, recorded Q2 sales of 60.7 billion won. Both revenue and operating profit decreased year-over-year as seasonal off-peak demand coincided with intensified impact from China's centralized procurement system.
Beijing Hanmi established plans to secure new growth drivers by continuously expanding market share in product categories subject to centralized procurement competition, cultivating products not subject to the procurement system, and accelerating new drug development.
Company Advances 30+ Drug Pipelines Including Obesity Treatments
The company operates over 30 innovative drug pipelines in obesity/metabolism, rare diseases, and oncology areas. Hanmi Pharmaceutical is systematically preparing all necessary matters for successful commercialization of GLP-1 obesity drug efeglenatide within the year.
Next-generation obesity treatment triple agonist (LA-GLP/GIP/GCG, HM15275) and the world's first muscle-building obesity treatment (LA-UCN2, HM17321) entered U.S. Phase 2 and Phase 1 clinical trials respectively.
CEO Hwang Sang-yeon stated, "We will continue to prioritize shareholder and customer value, enhance corporate value through responsible management based on laws and principles and continuous innovation, and create opportunities for new leaps forward."
Hanmi Pharmaceutical shares closed at 374,500 won on the day, down 4.10% from the previous trading session.
FAQ
What drove Hanmi Pharmaceutical's 116.9% operating profit growth in Q2?
The operating profit increase was driven by recognition of upfront payments from Eli Lilly for the sonepeglutide technology transfer agreement, steady growth of key products including Rosuzet, and increased sales from expanded co-promotion agreements with global pharmaceutical companies.
How did Rosuzet perform in Q2?
Rosuzet, Hanmi Pharmaceutical's dyslipidemia treatment combination drug, recorded Q2 out-of-hospital prescription sales of 61.6 billion won, representing 10.1% year-over-year growth.
What challenges is Beijing Hanmi facing in the Chinese market?
Beijing Hanmi experienced revenue and operating profit declines in Q2 due to seasonal off-peak demand and intensified impact from China's centralized procurement system. The subsidiary plans to expand market share in competitive procurement categories and cultivate products outside the procurement system.
