April 27, 2024

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[THE INVESTOR] South Korea’s Hanmi Pharmaceutical on Dec. 29 announced the reduction of a major licensing partnership it entered with Sanofi over a set of new long-acting diabetes treatments developed by Hanmi.

Under the newly agreed terms, Sanofi will return the development and commercialization rights to one of the three diabetes treatments it had licensed from Hanmi. In turn, Hanmi will refund a part of the upfront payment it had originally received from the French drugmaker.

The move was prompted by changing conditions in the global diabetes treatments market, and subsequent changes in Sanofi’s business agenda, according to the Korean drugmaker.

“The decision was made so that Sanofi can focus on efpeglenatide, which is nearing commercialization, while Hanmi can focus on the weekly insulin combination drug,” Hanmi Pharmaceutical said in a statement.

In November 2015, Hanmi Pharmaceutical licensed out a set of three new long-lasting diabetes treatments, collectively known as the “Quantum Project,” to Sanofi. They include efpeglenatide, a week-lasting insulin (LAPS-insulin115) and a combination of efpeglenatide and LAPS-insulin115.

Of the three licensed drugs, Sanofi returned the rights to the insulin combination drug to Hanmi. As a result, Hanmi will refund 190 million euros ($198 million) to Sanofi, while the additional milestone payments that Hanmi had been eligible to receive will decrease to 2.7 billion euros.

Under the original deal, Hanmi had received an upfront payment of 400 million euros from Sanofi, and was eligible for up to 3.5 billion euros for the drugs’ development, registration and sales milestones, as well as two-digit royalties on net sales.

As part of the new agreement, Hanmi will also take partial responsibility for financing the continued development of efpeglenatide, currently slated to begin phase 3 clinical trials in the US through Sanofi, and receive smaller milestone payments from Sanofi for efpeglenatide.

News of Hanmi’s reduced deal with Sanofi has ignited fresh uncertainties over the prospects of Hanmi’s new drug candidates licensed out to global drugmakers in the past.

Among the five mega licensing deals that Hanmi had signed with global pharmaceutical companies in 2015, two have run into hurdles or been terminated altogether.

In addition to Sanofi, Boehringer Ingelheim ended a $730 million licensing deal with Hanmi over a new lung cancer drug in development, Olmutinib, in September, after patient safety issues emerged during the drug’s clinical trials overseas.

Shares of Hanmi Pharmaceutical plunged 10.41 percent to a closing price of 305,500 won, on Dec. 29.

By Sohn Ji-young/The Korea Herald (jys@heraldcorp.com)