Hanall Biopharma, which had slowed down in the first half of the year, succeeded in turning a profit in the second half of the year. Due to the rebound in performance, securities companies are predicting that Hanall Biopharma will grow further this year by reflecting the value of various pipelines, including ‘IMVT-1402’, a treatment for Graves’ disease.
According to the Financial Supervisory Service’s electronic disclosure system on the 31st, Hanall Biopharma announced its business performance for the third quarter of 2024 through provisional performance disclosure on the 30th. Based on consolidated financial statements, sales in the third quarter grew 11.7% from KRW 33 billion in the same period last year to KRW 36.8 billion, and operating profit recorded KRW 400 million, successfully turning into a surplus.
Until the first half of this year, Hanall Biopharma recorded an operating loss of 2.9 billion won, but it rebounded in the second half of the year. The reason for the turnaround is the growth of key items such as probiotics.
An official from Hanall Biopharma said, “In the third quarter, the growth of core items continued, and domestic operating sales recorded 34.7 billion won, a 13% increase compared to the same period last year.”
Maintaining solid growth with products for diabetes and hair loss, recording double-digit growth, including products with annual sales of KRW 10 billion, such as probiotic medicine ‘Biotop’, prostate cancer and central precocious puberty treatment ‘Eligard’, and non-absorbable antibiotic ‘Normix’ did it
In particular, Hair Gro Tablets (ingredient finasteride), a hair loss treatment, sold more than 2 million tablets in September this year, following sales exceeding 1 million tablets in October last year. In addition, Eligard, whose indications were expanded last year as a treatment for central precocious puberty, recorded its highest ever sales of about 1.4 billion won last month.
Securities companies predicted an increase in profitability this year, reflecting expectations of Hanall Biopharma’s pipeline.
According to the ‘2024 Hanall Biopharma Consensus’ analyzed by financial information company FnGuide, operating profit recorded 7 billion won. This is a whopping 217.3% increase compared to the same period last year.
Shin Ji-hoon, a researcher at LS Securities, said, “We initiate coverage on Hanall Biopharma with a buy opinion and a target price of 53,000 won.
“The target stock price was calculated as the sum of the pipeline values. “The pipeline value only reflects the value of the U.S. and European markets for indications that are in Phase 3 clinical trials or have been identified,” he said.
The pipeline that Researcher Shin emphasized is IMVT-1402. IMVT-1402 is an Fc receptor (FcRn) antibody new drug candidate (HL161ANS) developed by domestic bio company Hanall Biopharma, and is expected to be a next-generation treatment for autoimmune diseases.
Researcher Shin said, “IMVT-1402 is a substance that eliminates the side effects of the FcRn antibody batoclimab, which includes lowering albumin and increasing LDL cholesterol due to it,” and added, “Unlike batoclimab, which had concerns about maintaining high doses due to side effects, it is possible to maintain high doses. In addition, it appears to be possible, and its binding ability to FcRn is higher than that of baptoclimab.”
“These two factors raise expectations about IMVT-1402’s ability to reduce IgG,” he said. “IMVT-1402 has already achieved an IgG reduction result of 80% in phase 1 clinical trials, leading the competition.”
“We have confirmed the power,” he added.
He continued, “We are also looking forward to results in Asia. Our Chinese partner, Harbor Biomed, based on the results of clinical trials in China last June.
“We have completed the submission of documents for batoclimab’s product approval in China,” he said. “Accordingly, if it is launched on the market as a treatment for myasthenia gravis in 2025, we expect to receive royalties based on sales.”
“We believe this can be done and reflected in corporate value in the future.”
Tak Ji-hoon, Money Today Broadcasting MTN reporter
