A Blessing in Disguise After Nasdaq Delisting: Hanmi Pharmaceutical Secures Foothold in North America with Aptose Acquisition

Acquisition of All Remaining Shares in Aptose Biosciences; Now a Subsidiary
Hanmi Pharmaceutical to Continue Clinical Trials of AML Drug Candidate Tuspetinib

Hanmi Pharmaceutical’s investment in the Canadian biotech company Aptose Biosciences (Aptose), which was on the verge of failure, is now expected to bear fruit. Despite Hanmi Pharmaceutical’s ongoing support, Aptose was delisted from the Nasdaq in April. However, Hanmi Pharmaceutical seized this crisis as an opportunity, successfully acquiring Aptose and is now being recognized for efficiently establishing a foothold for entry into the North American market.

According to the pharmaceutical and biotech industry on November 21, Hanmi Pharmaceutical announced on November 19 (local time) that its North American subsidiary, HS North America, had signed a final agreement to acquire all remaining shares of Aptose. Hanmi Pharmaceutical initially owned 19.93% of all issued common shares of Aptose. The acquisition price per share is 2.41 Canadian dollars (approximately 2,518 KRW).

The relationship between Hanmi Pharmaceutical and Aptose began as a technology export partnership. In 2021, Hanmi Pharmaceutical out-licensed its novel drug candidate for acute myeloid leukemia (AML), Tuspetinib, to Aptose. However, from 2023, as the global biotech investment market contracted due to economic slowdown and high inflation, Aptose’s cash flow began to deteriorate. Ultimately, the company was unable to bear astronomical clinical trial costs and fell into a liquidity crisis.

To continue clinical trials of Tuspetinib, Hanmi Pharmaceutical made a 7 million dollar (approximately 10.3 billion KRW) equity investment in Aptose early last year. At the end of the same year, it provided an additional loan of 10 million dollars (approximately 14.7 billion KRW). The market response was negative, and analysts in the domestic securities industry criticized the company for making excessive investments in a financially troubled company. As of the acquisition agreement date, Hanmi Pharmaceutical is known to have invested more than 30 million dollars (approximately 44.1 billion KRW) over the past 18 months, solely supporting the development of Tuspetinib.

Despite Hanmi Pharmaceutical’s support, Aptose was designated for delisting at the end of last year and appeared before the Nasdaq hearing panel, obtaining a grace period until March 31 of this year. However, after the grace period ended in April, Aptose failed to meet the requirements for maintaining its Nasdaq listing and was ultimately delisted.

Facing the worst-case scenario of delisting, Hanmi Pharmaceutical chose the straightforward approach of acquiring all remaining shares. Hanmi Pharmaceutical determined that Aptose’s technology and the clinical results of Tuspetinib to date were promising. The company’s research and development (R&D) infrastructure and network in the United States could serve as a bridgehead for entry into the North American market, and the decline in corporate value due to delisting allowed for a cost-effective acquisition.

By incorporating Aptose as a subsidiary, Hanmi Pharmaceutical can now independently continue the clinical development of Tuspetinib, which was previously out-licensed. Tuspetinib has demonstrated significant efficacy in combination with the current standard therapy in phase 1/2 clinical trials. Park Jaehyun, CEO of Hanmi Pharmaceutical, stated, “As positive data continues to accumulate, it is important to ensure that the development of Tuspetinib proceeds without interruption,” adding, “This acquisition will serve as Hanmi Pharmaceutical’s first direct foothold in the North American market.” Aptose plans to hold an extraordinary general meeting of shareholders in January next year to address the merger agenda.

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