Johnson & Johnson Unit, Hanmi Pharma Ink Diabetes and Obesity Pact Worth $915 Million

Novel Oxyntomodulin Based Therapy Bolsters Janssen’s Metabolism Portfolio

SEOUL, South Korea--(BUSINESS WIRE)--Hanmi Pharmaceuticals Co., Ltd. (Hanmi)(KRX: 128940), a Korea-based pharmaceutical company, today announced that it has entered into an exclusive license, agreement with Janssen Pharmaceuticals, Inc. (Janssen), for the development and commercialization of oxyntomodulin-based therapies including Hanmi’s HM12525A (^LAPSGLP/GCG), a novel biologic GLP-1/Glucagon dual receptor agonist to treat diabetes and obesity, which is expected to enter Phase 2 studies next year.

“We are very pleased to collaborate with Janssen, a world leader in pharmaceuticals with strong capabilities in clinical development and marketing, and excellence in science. Through this agreement, we look forward to accelerating the development of HM12525A, to provide an innovative treatment option to patients suffering with diabetes and obesity”

HM12525A is an oxyntomodulin-based therapy (GLP-1/glucagon receptor dual agonist) that has shown evidence of improving multiple metabolic parameters that lead to improved blood glucose, body weight, and insulin sensitivity. This asset has the potential, as a once weekly therapy, to be a best-in-class oxyntomodulin-based therapy.

“We are very pleased to collaborate with Janssen, a world leader in pharmaceuticals with strong capabilities in clinical development and marketing, and excellence in science. Through this agreement, we look forward to accelerating the development of HM12525A, to provide an innovative treatment option to patients suffering with diabetes and obesity,” said Dr. Gwan Sun Lee, CEO/President of Hanmi.

Under the terms of the agreement, Janssen will obtain exclusive worldwide rights, except Korea and China, to develop and commercialize HM12525A. Hanmi will receive an upfront payment of $105 million, and is eligible for up to $810 million in potential clinical development, regulatory and sales milestones. If HM12525A is successfully commercialized, Hanmi would also be eligible for tiered double-digit royalty payments. The agreement is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.

About Hanmi Pharmaceutical Co., Ltd.

Hanmi Pharmaceutical is a Korea-based global pharmaceutical company focused on the development and commercialization of new pharmaceutical products. The Company is fully integrated from R&D through manufacturing, marketing and sales with an established presence in Korea as well as China. The Company invests over 20 percent of its sales in R&D and has over 20 programs in clinical development in three main areas: 1) novel long-acting biologics based on the Company's LAPSCOVERY™ platform including weekly insulin, weekly to monthly GLP-1, and their combinations (Quantum Project) in diabetes and obesity; 2) novel targeted agents against cancer and autoimmune disorders; and 3) fixed-dose combination programs. More information on Hanmi is available at www.hanmipharm.com.

This press release includes forward-looking statements about the development and commercialization agreement between Hanmi Pharmaceutical Co., Ltd. and Janssen Pharmaceuticals Inc., and reflects Hanmi’s current beliefs. While Hanmi believes the forward-looking statements contained in this press releases are accurate, those statements are subject to risks and uncertainties that could cause actual outcomes to vary materially from the outcomes reference in the forward-looking statements.