April 25, 2024

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[THE INVESTOR] Hanmi Pharmaceutical’s stock price fell excessively, by up to 8.5 percent, following the suspension of its novel drug candidate’s clinical trials, said Korea Investment and Securities on Feb. 20, maintaining a “buy” recommendation. 

The stock price fall shrank the total market value of the company by 530 billion won (US$495.74 million), but the licensed out candidate is estimated to be worth 335 billion won, according to analyst Jin Hong-guk. There is a possibility that the development of the autoimmune drug could be resumed targeting other diseases than rheumatoid arthritis, he added.

There are a series of candidates in the pipeline and the recent stock price dip could be an opportunity to purchase, noted the analyst while lowering the target price to 540,000 won from 570,000 won reflecting the suspension.

By Hwang You-mee (glamazon@heraldcorp.com)