Company of the week: Hanmi Pharm (South Korea)

Company Overview

Hanmi Pharm Co. is one of South Korea's leading pharmaceutical companies, distinguished by its heavy investment in novel drug R&D. The company has built an impressive foundation combining domestic market strength with ambitious global aspirations.

Key Company Metrics

Metric	Value
Annual Sales	~₩1.5 trillion (~$1.0 billion)
R&D Investment	~15% of revenue
Active Pipeline Programs	~25 drug candidates (mid-2025)
Market Cap (Nov 2025)	~₩5.85 trillion (~$4.4 billion)
Net Margin	~10%
Stock Ticker	KOSPI: 128940

Hanmi's pipeline spans multiple therapeutic areas, with particular focus on metabolic diseases (diabetes, obesity, NASH) and oncology. The company's strategy has long combined a stable domestic business—anchored by successful products like the hypertension combination Amosartan—with ambitious global drug development projects.

Hanmi gained international attention in 2015 after striking multi-billion-dollar licensing deals with global pharma. Although several early partnerships unraveled, the company has persisted in advancing its pipeline. Today, Hanmi is again in the spotlight due to promising obesity and NASH therapeutics, alongside renewed partnership activity.

Below, we present a two-sided analysis: a Blue Team (Bullish) perspective highlighting Hanmi's strengths and opportunities, and a Red Team (Bearish) perspective noting the challenges and risks.

Blue Team Perspective (Bullish Case)

Robust Pipeline & Innovative Science

Hanmi's pipeline is rich and diverse, reflecting strong R&D capabilities. The company has 25 active R&D programs as of mid-2025, including multiple candidates with first-in-class or best-in-class potential.

Key Obesity Pipeline Assets

Drug Candidate	Mechanism	Stage	Differentiation
HM17321	Long-acting UCN2 analog targeting CRFR2	Phase 1 (2026)	World's first "muscle-building" obesity drug
HM15275	GLP-1/GIP/glucagon triple agonist	Phase 2	Next-gen metabolic breadth beyond current GLP-1s
Efpeglenatide	Long-acting GLP-1 agonist	Phase 3 complete	First Korean homegrown GLP-1 obesity drug

In obesity treatment, Hanmi has introduced truly novel biology. HM17321 aims to build muscle while reducing fat—a unique approach in the field that addresses one of the key limitations of current GLP-1 therapies: muscle loss during weight reduction.

Another candidate, HM15275, is designed to go beyond current GLP-1 therapies like semaglutide by offering broader metabolic coverage through its triple-agonist mechanism.

Hanmi's scientific innovation is gaining global recognition. The company presented four studies at ObesityWeek 2025 and was noted as the world leader in GLP-1/metabolic drug patent filings during 2021–2023. Such R&D productivity and innovation suggest that Hanmi can produce high-value assets and differentiated mechanisms in areas of huge unmet need.

Pipeline Nearing Commercialization

After years of development, some of Hanmi's internally developed drugs are on the cusp of reaching the market.

Efpeglenatide: Phase III Success

Efpeglenatide—a long-acting GLP-1 agonist originally licensed to Sanofi in 2015—has met co-primary endpoints in a Phase III obesity trial in non-diabetic adults. Hanmi continued this program after Sanofi returned it, demonstrating remarkable resilience.

Efpeglenatide Timeline	Milestone
2015	Originally licensed to Sanofi
2016	Returned by Sanofi
Oct 2025	Phase III endpoints met
End of 2025	Planned Korea filing
Late 2026	Targeted Korea launch

If approved, efpeglenatide could become Korea's first homegrown GLP-1 obesity drug. Early data are encouraging, with local reports citing up to 10–30% weight reduction in trials. Its success would validate Hanmi's long-term R&D investment.

Pipeline Progression Summary

Asset	Status	Key Upcoming Milestone
Efpeglenatide	Phase 3 complete	Korea filing by end-2025
HM15275	FDA cleared for Phase 2	Phase 2 results by 1H 2027
HM17321	IND cleared	US Phase 1 begins 2026

In other words, Hanmi's metabolic pipeline is progressing rapidly, with one asset nearing commercialization and two more advancing in the clinic—a pipeline portfolio that could attract lucrative licensing deals or eventually generate revenue streams in the massive global obesity market.

Strategic Partnerships and Validation

Hanmi has a proven ability to attract global pharma partners, which serves as external validation of its science and provides non-dilutive funding.

Merck & Co. Partnership (2020)

In 2020, Merck & Co. (MSD) licensed Hanmi's GLP-1/glucagon dual agonist efinopegdutide for NASH in a deal structured as follows:

Deal Component	Value
Upfront Payment	$10 million
Milestone Payments	Up to $860 million
Total Deal Value	Up to $870 million

This deal came after the asset had been returned by a previous partner, underscoring Hanmi's resilience in finding new opportunities. Merck is now advancing efinopegdutide (MK-6024) through Phase 2 trials in NASH, with Phase 2b data expected in the first half of 2026.

If positive, this drug could be a contender in the high-value NASH space. Analysts note it might even pursue accelerated FDA approval post-Phase 2 given the FDA's openness to fast-tracking NASH drugs.

Gilead Sciences Partnership (2025)

In September 2025, Gilead Sciences licensed Hanmi's oral drug delivery compound encequidar (a P-gp pump inhibitor). Encequidar is the key component of Hanmi's Orascovery™ platform that enables converting IV medications into oral form.

Gilead Deal Terms	Details
Rights Granted	Exclusive use in virology field
Upfront to HealthHope	$10 million
Milestones to HealthHope	Up to $72.5 million
Hanmi Benefits	Upfront fee + milestones + low-single-digit royalties

This deal validates Hanmi's formulation technology, showing that even previously challenged assets can find new life with top-tier partners. It also opens a door for collaboration with a world-leading antiviral company.

Aptose Biosciences Investment (2023)

A case in point of creative collaboration is tuspetinib (HM43239), a targeted AML therapy which Hanmi out-licensed to Aptose Biosciences. In 2023, Hanmi took an equity stake in Aptose—investing $3 million with option up to $7 million—to support development after the drug showed encouraging results in resistant AML patients.

Aptose Investment Structure	Details
Initial Investment	$3 million
Maximum Investment	Up to $7 million
Potential Stake	~19.9%

Such moves demonstrate Hanmi's flexible partnering strategy: it licenses out assets for external development while often remaining involved through equity or joint efforts to share in upside.

The company's ability to repeatedly strike deals—Merck, Gilead, Aptose, and previously Sanofi, Janssen, and others—underscores a high level of interest from global investors in Hanmi's science. Each partnership also de-risks the pipeline by bringing in external expertise and capital.

Investor Confidence and Market Momentum

2025 has seen surging investor optimism around Hanmi, driven by its pipeline progress. The company's stock has rallied to multi-year highs.

Key Stock Price Movements (2025)

Date	Event	Stock Movement
September 2025	HM17321 preclinical data at EASD	+6.6% to ₩396,500 (highest since Jan 2021)
October 27, 2025	Efpeglenatide Phase III success	+26% to ~₩428,000

These moves indicate that sophisticated investors are rewarding Hanmi for R&D milestones, pricing in greater future value.

Korean analysts have taken note. Hana Financial recently raised its target price to ₩540,000 (from ₩500k), specifically citing an increase in the "non-operating value" of Hanmi's drug pipeline to approximately ₩1.92 trillion (≈$1.45 billion). They highlighted the obesity candidates HM17321 and HM15275 as meeting key requirements in the obesity market and attracting strong global interest.

Analyst Valuation Components	Estimated Value
Pipeline Non-Operating Value	~₩1.92 trillion (~$1.45B)
Total Market Cap (Nov 2025)	~₩5.85 trillion (~$4.4B)
Price-to-Sales Multiple	~4×

Importantly, Hanmi's stable core business provides a solid foundation—the firm remains profitable with a net margin around 10%. This suggests investors are valuing Hanmi at roughly 4× sales, reflecting expectations of future growth from pipeline success.

Solid Financials and R&D Commitment

Unlike many pure-play biotechs, Hanmi has an established revenue stream from its marketed products and collaborations, which mitigates financial risk.

Financial Performance

Metric	2024 Performance
Annual Sales	Record ₩1.49 trillion
R&D as % of Revenue	~14–15%
Q3 2025 R&D Spend	₩54.8 billion (15.1% of sales)
Operating Profit	Growing year-on-year despite R&D intensity

Sales in 2024 reached a record ₩1.49 trillion, driven by its domestic portfolio of pharmaceuticals ranging from innovative combinations like Amosartan to licensed-in products in diabetes and respiratory therapy. This steady top-line, combined with disciplined cost control, means Hanmi can sustain heavy R&D investment without external financing.

Hanmi consistently reinvests approximately 14–15% of revenue into R&D—an unusually high figure for a mid-sized pharma—yet still posts operating profits. The company's ability to maintain R&D momentum even during global headwinds shows strong commitment from management to innovation.

Governance Stabilization

With the resolution of a family ownership dispute in late 2024, Hanmi's governance has stabilized under Chairperson Song Young-sook and her daughter Lim Joo-hyun (Vice Chairman). The family has reiterated focus on "sustainable growth" of the pharma business.

Shareholder	Stake
Controlling Family	~41%
National Pension Service	~11%
Other Institutional/Retail	~48%

This clarity in leadership gives investors confidence that Hanmi will be managed with an eye toward long-term value creation and scientific advancement.

The bull case is that Hanmi Pharm's blend of innovation, partnerships, financial stability, and supportive ownership puts it on track to evolve from a regional player into a company with globally marketed drugs—potentially delivering outsized rewards to shareholders if even a few pipeline bets pay off.

Red Team Perspective (Bearish Case)

Intense Competition in Core Areas

A major concern is that Hanmi is entering therapeutic areas dominated by far larger players, which could limit its upside or chance of success.

Competitive Landscape in Obesity

Company	Key Asset	Stage	Mechanism
Novo Nordisk	Semaglutide (Ozempic/Wegovy)	Marketed	GLP-1 agonist
Eli Lilly	Tirzepatide (Mounjaro/Zepbound)	Marketed	GLP-1/GIP dual
Eli Lilly	Retatrutide	Late-stage	Triple agonist
Hanmi	HM15275	Phase 2	Triple agonist
Hanmi	HM17321	Phase 1	UCN2 analog
Hanmi	Efpeglenatide	Filing	GLP-1 agonist

Market leaders like Novo Nordisk and Eli Lilly are years ahead. Their products are already global blockbusters, with Lilly's own triple agonist retatrutide and others in late-stage development. Hanmi's triple agonist HM15275, while promising, is only in Phase 2 and must prove it's not only safe but significantly better than these incumbents.

Convincing physicians or partners to adopt Hanmi's obesity drugs could be an uphill battle unless their outcomes truly surpass those of competitors.

The "muscle-building" angle of HM17321 is intriguing, but remains unproven in humans with Phase 1 just beginning. It's unclear if selectively adding muscle mass will translate to a meaningful clinical benefit or just complicate regulatory approval.

Meanwhile, efpeglenatide—expected to be Hanmi's first-to-market obesity product—is essentially another long-acting GLP-1 agonist entering a very crowded field. By 2026 (its targeted Korea launch), multiple GLP-1 drugs will likely be available or in use off-label for obesity. Efpeglenatide might simply be too late and confined to the domestic market.

The risk is that efpeglenatide becomes a modest niche product, generating far less revenue than initially hoped when it was part of Sanofi's portfolio.

Unproven Track Record & Past Setbacks

While Hanmi's pipeline is broad, the company lacks a track record of successfully bringing novel drugs to the global market. In fact, its history is marked by high-profile setbacks which warrant caution.

History of Partnership Disappointments

Year	Partner	Asset	Outcome
2015	Sanofi	Efpeglenatide	~₩4.3 trillion deal; drug returned in 2016
2015	Janssen	Efinopegdutide	Terminated after Phase 2
2016	Boehringer Ingelheim	Olmutinib (HM61713)	$730M deal canceled after fatal skin reactions
2017	Zai Lab	Olmutinib	China deal voided
2022	Spectrum Pharma	Poziotinib	FDA rejection; drug returned

The much-touted 2015 deals did not bear fruit. The Sanofi mega-licensing ended with the drug being returned a year later. In oncology, olmutinib was abruptly canceled after serious safety issues (fatal skin reactions) emerged. Hanmi had to pull the drug from the Korean market.

Another oncology agent, poziotinib, was licensed to Spectrum Pharma, but after multiple trial failures in lung cancer (Exon20 EGFR mutants) and an FDA rejection in 2022, Spectrum returned the drug.

These serial disappointments have weighed on Hanmi's reputation—they suggest that initial enthusiasm around Hanmi's science has not always translated to clinical success or commercial viability.

For current investors, the question is whether 2025's pipeline is truly different or simply repeating history with new names.

None of Hanmi's novel compounds have completed Phase 3 internationally yet, so the efficacy and safety remain unproven at scale. The bullish narrative assumes "this time is different," but past patterns warrant skepticism until late-stage data confirms the hype.

Valuation and Financial Risk

Hanmi's current valuation already prices in significant pipeline success—a double-edged sword for investors.

Valuation Risk Factor	Consideration
Pipeline Value Attribution	~₩1.9 trillion (~$1.5B) priced into stock
Merck NASH Trial	Major 2026 catalyst; NASH has been a "graveyard" of failed drugs
Operating Profit Pressure	Analysts estimated ~30% YoY drop in Q3 2025 operating profit after R&D accounting changes
Base Business Growth	Only ~0–1% growth last year

The ₩1.9 trillion pipeline value could evaporate quickly if trial results disappoint.

 Merck's Phase 2b trial of efinopegdutide in NASH is a major 2026 catalyst. NASH, however, has been a graveyard of failed drugs—even ones that looked good in Phase 2. Should efinopegdutide underperform or encounter safety issues, Merck might abandon the program, instantly deflating one of Hanmi's biggest future cash streams.

 The stock's run-up to ~₩400k+ relies on positive expectations. Any negative news—a trial delay, a regulatory hurdle, a competing drug's superior data—could trigger a sharp correction.

 Furthermore, Hanmi's aggressive R&D spending, while a strength, also compresses short-term earnings. If the company continues to increase R&D to support multiple Phase 2/3 trials simultaneously, its margins will stay under pressure.

 The investment case hinges on pipeline payoff. Until or unless approvals and partnerships bring in substantial revenue, Hanmi's bottom line is bolstered mostly by its legacy products. The current valuation leaves little margin for error—Hanmi must hit many milestones perfectly to justify its market cap, a high bar in biotech.

Dependence on Partnerships and External Decisions

Hanmi's business model means that much of its success is out of its direct control, resting instead on partners and licensees.

Dependency Risk	Example
Partner Prioritization	Merck could deprioritize efinopegdutide for internal projects
Historical Pattern	Janssen ended first efinopegdutide deal; Hanmi had to shop it for years
Partnership Economics	Gilead deal brought only small upfront and single-digit royalties
External Trial Control	Athenex's Oraxol failure (FDA concerns) impacted Hanmi despite being partner's trial design

The fate of efinopegdutide is entirely in Merck's hands now—Hanmi has no say in development decisions. If Merck prioritizes other projects or if strategic focus changes (as often happens in big pharma), Hanmi's asset could languish.

Hanmi will likely seek a global partner for its new obesity candidates since it lacks the global salesforce to commercialize in the US/EU alone. But securing a partnership on good terms is not guaranteed. Big pharmas will compare Hanmi's data to their own programs.

 Any partnership might come only after proof-of-concept (e.g., Phase 2 efficacy), meaning Hanmi must invest through Phase 2 on its own. Even then, the terms might favor the partner.

 Hanmi often trades away upside for risk-sharing. This dependence on external partners also introduces timeline uncertainty that is not fully in Hanmi's control.

Corporate Governance and Strategic Uncertainty

Hanmi is a family-controlled company, and recent events have shown this can create strategic turbulence.

2024 Governance Crisis

In early 2024, a surprise plan to merge Hanmi Science (the holding company) with OCI Holdings (a non-pharma entity in chemicals/solar energy) led to a family feud that spooked investors.

Event	Impact
Merger Proposal	Hanmi Science + OCI Holdings (chemicals/solar)
Family Split	Two sons opposed; widow supported
Resolution	Merger called off by end of 2024
Current Control	~41% in family hands

 The merger made little industrial logic. The fact that the controlling family even considered selling or merging with an unrelated business raises questions about strategic focus and the possibility of future disruptions.

 The matriarch's side prevailed and has promised to stabilize governance, but with ~41% of shares in family hands and the rest fragmented, minority investors have limited influence.

 For an international investor, this structure means key decisions—large asset sales, M&A, or use of cash—might not always align with minority shareholder interests.

 Additionally, Hanmi's heavy reliance on the Korean market and government (for drug pricing and approvals of domestic products) introduces regulatory risk. Any changes in Korean pharma policy or pricing—for example, if GLP-1 drugs' reimbursement is restricted due to cost—could impact Hanmi's base business and local launch prospects.

 The red team contends that Hanmi carries not just scientific risk but strategic and governance risk. The excitement around its pipeline could be undermined by factors like partner decisions, competitive moves, or family-driven agendas, which make the company's trajectory less predictable than its bullish narrative suggests.

Summary

 

Bull Case vs. Bear Case

Factor	Blue Team (Bull)	Red Team (Bear)
Pipeline	25 programs; innovative mechanisms; nearing commercialization	Years behind competitors; no global Phase 3 success yet
Obesity Franchise	Novel biology (muscle-building); differentiated triple agonist	Crowded market; GLP-1 giants years ahead
Partnerships	Merck, Gilead validate science; non-dilutive funding	History of returned drugs; partner decisions out of Hanmi's control
Financials	Record revenues; profitable despite 15% R&D spend	Base business growing slowly; margins under pressure
Valuation	Market recognizing pipeline value; analyst upgrades	~$1.5B pipeline value must materialize; no margin for error
Governance	Family feud resolved; NPS oversight	Family control; past strategic confusion

Disclaimer: The author is not a lawyer or financial adviser. This article is for informational purposes only and does not constitute investment or legal advice. Always conduct your own due diligence and consult qualified professionals before making investment decisions.