Hanmi Pharmaceutical signed an exclusive licensing agreement with Genentech, a Roche Group subsidiary, for its next-generation obesity drug candidate HM17321. According to Sina Finance, the deal could reach up to 3.5 trillion won, or $2.3 billion.

Hanmi Pharmaceutical said on the 24th that the agreement covers metabolic diseases including obesity, type 2 diabetes, and cardiovascular disease. Genentech received global rights to develop, manufacture, and commercialize HM17321 outside South Korea, while Hanmi Pharmaceutical retains domestic rights in South Korea.

Hanmi Pharmaceutical will complete Phase 1 clinical trials, after which Genentech will take over development starting from Phase 2. Under the agreement, Hanmi Pharmaceutical will receive a $190 million upfront payment, or about 285 billion won, and additional milestone payments tied to clinical development, regulatory approval, and commercialization. After the drug is launched, Hanmi Pharmaceutical will also receive royalties based on product sales.