[EQUITIES] ‘Hanmi’s canceled drug has limited effect’
[THE INVESTOR] Hanmi has given up developing its new drug candidate Olita but it will only have limited effect on its stock price, said Eugene Investment and Securities on April 16.
There were no expectations that Olita could be a global new medicine since Boehringer Ingelheim terminated its contract in 2016, and the halted development of phase 3 clinical trials will have no effect, said analyst Kim Mi-hyeon.
The pharmaceutical company was granted approval from Ministry of Food and Drug Safety in 2016 on the condition that it will complete the trials by 2020. But when the target drug Tagrisso, a lung cancer treatment from AstraZeneca, was rolled out in the domestic market and got insurance coverage, Hanmi had a hard time recruiting patients, according to the analyst.
Since the company has announced that it will carry out clinical studies in a number of Asian countries for Olita this year, there was some lack of communication with investors, she pointed out.
Its revenue in the first quarter will remain flat at 235.5 billion won (US$219.58 million), slightly missing market expectations, and operating profit will decline 18.2 percent on-year to 25.7 billion won, estimated Kim.
By Hwang You-mee (email@example.com)