Yuhan acquires new drugs from biotech venture firms

Q2 R&D cost 40%↑ YoY…reaching the highest amount in the past 5 years

Invested KRW 8 billion in two biotech ventures…paid technology fees for acquiring promising new drugs

In search of new opportunities through outward investment

Yuhan significantly increased its research and development (R&D) investment.

 

Over the past five years since acquiring new drug technology from biotech venture companies, Yuhan's R&D investment size has reached its peak.

 

This expansion of outward investment seems to be the company's outlook for securing a new portfolio.

 

According to Yuhan on July 31st, the company's R&D cost in Q2 amounted to KRW 53.5 billion, up 39.8% from KRW 38.2 billion year over year (YoY).

 

It increased 17.0% from the previous quarterly investment amount of KRW 45.7 billion.

 

Yuhan's quarterly R&D investment amount exceeded KRW 50 billion in four years since Q4 2020.

 

In 2020, its R&D investment spending significantly increased due to conducting the global Phase 3 trial for the new anticancer drug Leclaza monotherapy.

 

Yuhan's quarterly R&D investment amounts (unit: 1 million, source: Yuhan).

Yuhan's expanded R&D investment for this year is attributed to acquiring promising technologies from biotech venture companies.

 

In Q2, Yuhan invested KRW 8 billion in two biotech ventures.

 

In March, Yuhan signed contracts with Cyrus Therapeutics and KANAPH Therapeutics to acquire technology transfer of anticancer drug candidates based on the SOS1 inhibitor mechanism.

 

The contract value amounted to KRW 208 billion, including milestones for future development, approval, and sales.

 

Cyrus Therapeutics is a biotech venture developing targeted anticancer drugs and targeted protein degraders through medicinal and pharmaceutical chemistry-based technology.

 

KANAPH Therapeutics is developing the next-generation new drug for the field of cancer and autoimmune diseases based on pharmaceutical convergence technology.

 

The SOS1 inhibitors that Yuhan acquired are anticipated to increase treatment effectiveness in synergy with KRAS inhibitors or EGFR inhibitors and help solve tolerance to conventional therapies.

 

SOS1 is a protein regulating the activity of RAS, involved in cell proliferation, and it is regarded as a promising target for anticancer function regardless of various RAS mutant types or cancer types.

 

KRAS and EGFR mutations are common causes of lung cancer, colorectal cancer, pancreas cancer, and cancers with unmet medical needs.

 

Targeting these is expected to have significant potential in terms of the market.

 

Cyrus Therapeutics and KANAPH Therapeutics discovered non-clinical candidate products through joint research.

 

At the American Association for Cancer Research (AACR) conference last year, they presented results showing advantages in pharmacological properties, including superior anti-cancer efficacy in xenograft animal models compared to competitive drugs and improved drug dynamics within the body.

 

In the second quarter, Yuhan Corporation paid KRW 3 billion in royalties to the biotech company J INTS BIO.

 

J INTS BIO is focused on developing anticancer drugs.

 

In 2021, J INTS BIO secured a new pipeline by entering into a transfer agreement for a novel drug candidate developed by Dr.

 

Kwang Ho Lee from the Korea Research Institute of Chemical Technology (KRICT) and Professor Byoung Chul Cho, Director of the Lung Cancer Center at Yonsei Cancer Hospital.

 

Yuhan entered into a partnership with J INTS BIO by investing KRW 20 billion each in equity in 2021 and 2022.

 

Last May, Yuhan signed a licensing agreement with J INTS BIO for the targeted therapy 'JIN-A04.' Yuhan has secured exclusive global rights to develop and commercialize J INTS BIO's tyrosine kinase inhibitors that target HER2 and EGFR.

 

The technology transfer agreement has a total contract value of KRW 429.8 billion, with a non-refundable upfront payment of KRW 2.5 billion.

 

On August 5th, Yuhan received approval from the U.S.

 

Food and Drug Administration (FDA) for the Phase 1/2 Investigation New Drug (IND) under the code name YH42946.

 

The study will evaluate the safety, drug tolerance, pharmacokinetics, and anti-tumor activation following oral administration of YH42946 in patients with locally advanced or metastatic solid cancers harboring HER2 mutation and EGFR exon 20 insertion mutations.

 

Yuhan focuses its R&D investment on acquiring external technology to uncover new growth opportunities.

 

A prime example of Yuhan's success in open innovation is its cancer drug, Leclaza.

 

Yuhan obtained the development rights for Leclaza from Oscotec and its subsidiary, Genosco, in 2016, just before the drug reached the preclinical stage.

 

The total contract value was KRW 1.5 billion.

 

Under the terms of the agreement, the partner received a fixed technology fee of KRW 1 billion within 30 days of the contract signing and an additional KRW 500 million upon approval of Phase 1 clinical trials.

 

Yuhan entered into a global licensing agreement with Ubix Therapeutics for prostate cancer treatment in May.

 

Ubix Therapeutics is a Korean biotechnology company developing new anticancer drugs.

 

Yuhan secured global exclusive rights from Ubix Therapeutics to develop and commercialize a targeted protein degradation (TPD) agent that degrades androgen receptor.

 

The contract value was up to KRW 150 billion.

 

An upfront payment was KRW 5 billion, and Ubix Therapeutics could earn up to KRW 145 billion based on development, approval, and sales milestones.

 

The contract also requires Yuhan to pay royalties based on the net sales of the drug it directly markets.

 

Additionally, if Yuhan enters into a third-party technology transfer agreement for the product, the revenue from such a technology transfer will be distributed according to the drug's development stage when the agreement is signed.