Johnson & Johnson enters strong partnership with Hanmi Pharmaceutical
Global giant Johnson & Johnson confirmed they still remain in strong partnership with South Korean drugmaker, Hanmi Pharmaceutical, following concerns amongst shareholders.
Rumours started when J&J’s subsidiary, Janssen Pharmaceutical, “suspend participant recruitment” for a clinical trial (according to the US National Institutes of Health’s ClinicalTrials.gov). Shareholders feared issues with the diabetes drug as well as the partnership between the two companies. This led to plummeting shares of Hanmi Pharmaceutical, with a drop of 10.76% on Wednesday.
A spokesperson for J&J has now spoken out about the incident to alleviate concerns about the delay in the trials.
According to Endpoint News, the delay was “manufacturing-related”. The spokesperson went on to say that “[their] partnership with Hanmi remains strong regarding this drug candidate and we look forward to restarting the study”.
Hanmi declined to comment on the details, citing a nondisclosure with J&J.
Unfortunately, the announcement has not restored full confidence in the shareholders, as shares continued to drop into Thursday.
Background info: JNJ-64565111 (also known as HM12525A) is a biologic drug for the treatment of diabetes, originally developed by Hanmi. It was licensed out by Hanmi to Janssen Pharmaceutical in Nov 2015 in a deal valued at $915m. Janssen had begun phase 1 clinical trials in the US from July, testing the drug’s efficacy in treating patients with Type 2 diabetes mellitus. Given the recent delay, the first-stage trials are expected to continue beyond their estimated completion period in April 2017.