LG Chem transfers its rare obesity drug rights for KRW 130B

LG Chem’s rare obesity drug treatment ‘LB54640'

Transfers global rights for 'LB54640' to Rhythm Pharmaceuticals… worth KRW 400 billion in total

LG Chem announced on the 5th that it had licensed out its new drug candidate that targets a rare genetic disease characterized by severe appetite control dysfunction to the U.S-based Rhythm Pharmaceuticals.

 

The agreement, which amounts to USD 350 million (KRW 400 billion), includes an upfront payment of USD 100 million (KRW 130 billion).

 

Upon successful commercialization, the company will receive separate sales royalties based on annual sales.

 

The candidate targets a rare form of obesity.

 

This form of rare obesity is characterized by abnormalities in appetite control due to defects in the pathway of the satiety signaling gene, ‘MC4R (Melanocortin-4 Receptor),’ resulting in persistent and severe obesity.

 

Its symptoms typically appear in childhood.

 

LB54640 is the world's first orally administered MC4R agonist, and LG Chem has confirmed its dose-dependent weight loss tendency and safety through a Phase 1 trial.

 

Based on the Phase I trial results, the company entered Phase 2 clinical trials in the U.S.

 

in October last year in patients with rare forms of obesity.

 

Rhythm Pharmaceuticals plans to take over the trials and begin recruiting patients in earnest in the near future.

 

LG Chem expects the partnership to accelerate the development of LB54640 and the provision of a more convenient treatment option for the patients.

 

Recruiting patients is one of the biggest challenges for orphan drugs, and LG Chem expects the technology transfer agreement with Rhythm Pharmaceuticals, which invests a lot of resources in identifying potential patients, will support more efficient development.

 

Rhythm Pharmaceuticals was founded in 2010 in Boston, USA.

 

It was listed on the NASDAQ in 2017.

 

It successfully developed and commercialized the world's first MC4R agonist, IMCIVREE (setmelanoatide), and established itself as a leading company in the global rare obesity drug market.

 

Jee-woong Son, Head of LG Chem’s life sciences division, said, "Rhythm Pharmaceuticals is the right partner for the successful development of LB54640.

 

We will actively collaborate with our partner to promptly provide safer and more effective new drugs to patients suffering from rare obesity worldwide.” David Meeker, CEO of Rhythm Pharmaceuticals, said, "The results from LG Chem's Phase 1 study of LB54640 confirm the candidate’s potential as a novel drug with a high level of safety.

 

The collaboration will allow us to expand our portfolio of rare obesity drugs and provide each patient with an optimal treatment option fit to their needs."