Dong-A ST has received the right of DA-4501 from AbbVie

Two global technology contracts have been terminated in the past five years

View of Dong-A ST headquarters building

Dong-A ST has received the right of MerTK inhibitor from AbbVie for the first time in five years.

 

Dong-A ST has terminated two large technology export contracts with global pharmaceutical companies.

 

Dong-A ST plans to review new possibilities based on joint research data that has been conducted for the past five years.

 

Starting with biosimilar for Stelara, it is seeking new growth engines by combining its own pipeline R&D and active open innovation strategies such as diabetes and dementia.

 

◆AbbVie, returning rights to new drugs in five years "Not meeting internal standards" Dong-A ST announced on the 9th that it had been notified by AbbVie that it had returned the rights of the MerTK inhibitor DA-4501.

 

The official reason for the return of rights is lack of validity.

 

Dong-A ST explained, "We conducted a joint study on preclinical candidate materials after exporting the technology before deriving candidate materials, but the right was returned because we could not find any preclinical candidate materials satisfying AbbVie's internal standards." Dong-A ST signed a contract with AbbVie Biotechnology, a subsidiary of AbbVie, in December 2016 to transfer the global rights of MerTK inhibitor DA-4501 (excluding Korea).

 

It is a contract worth up to $525 million, including development, approval, and milestones, in addition to $40 million in down payment that has no obligation to return.

 

Dong-A ST received $40 million in down payment in January of the following year and recognized it in installments for 36 months.

 

MerTK inhibitors are new mechanisms that inhibit MerTyrosine Kinase (MERTK) protein activity to help boost the immune system.

 

Even though it was in the process of searching for candidate materials at the time, the total contract size was not only large, but also the pre-contract fee accounted for nearly 8% of the total conditions were unconventional.

 

Industries were interested in whether pre-clinical testing would be possible, but the contract was terminated after AbbVie decided to return the rights.

 

However, even after the termination of the contract, the down payment does not need to be refunded.

 

◆Donga ST, the contract for global technology export has been terminated twice.

 

A bad relationship with Allergan This is not the first time that Dong-A ST has terminated its technology export contract with a global pharmaceutical company.

 

Dong-A ST also received the right to develop Evogliptin, a non-alcoholic hepatitis drug, in November 2017.

 

The acquisition of Tobira Therapheutics, the first contractor, by Allergan changed the R&D strategy.

 

Dong-A ST's contract amount with Tobira Therapheutics in April 2016 was up to $61.5 million, including a down payment that had no obligation to return.

 

At that time, Tobira expressed its willingness to target NASH adaptation by developing its own composites and Cenicriviroc, which was being developed in addition to Dong-A ST's single ingredient in Evogliptin, a diabetes treatment.

 

However, Allergan is said to have decided to return the rights of Evogliptin developed by Tobira Therapheutics because it was slower than the NASH treatment developed jointly with Novartis.

 

At the time, a Dong-A ST official said, "The decision is based on Allergan's own research and development strategy, and it has nothing to do with effectiveness or development as a treatment for Evogliptin." The recent termination of two major contracts involved Allergan.

 

AbbVie, which notified the termination of the contract, spent a total of ₩63 billion to acquire Allergan in 2019.

 

It is planning to make new inroads into medical aesthetic businesses such as botulinium through acquisition of Allergan.

 

AbbVie launched a subsidiary dedicated to Allergan's cosmetic products, including Botox and filler, the following year.