Hanmi, Sanofi sign $4.2 billion deal on diabetes drug

By Choi Sung-jin

Hanmi Pharmaceutical has concluded the largest contract signed by a Korean drugmaker to export a new medicine technology.

On Thursday, the company announced its license deal with global drugmaker Sanofi to develop a portfolio of experimental, long-acting diabetes treatments, valued at up to 3.9 billion euros ($4.2 billion).

Under the agreement, Hanmi will receive an upfront payment of 400 million euros and is further eligible for 3.5 billion euros for milestones in development, registration and sales performance, as well as double-digit royalties on new sales.

The agreement marks the largest license deal for a Korean drugmaker.

Hanmi’s new medicine is expected to extend drastically the duration of remedial effects, making it possible for patients now having daily injections to reduce this to a monthly shot at most. The company has yet to finish development of the treatment, with clinical tests under way on patients.

“We are pleased that Sanofi, a global name for diabetes treatment, has recognized the value of Hanmi’s Quantum Project,” said Lee Gwan-sun, the company’s president. “And we expect the latest contract will enhance the possibility of providing new treatment opportunities for patients.”