LG Chem announced on Jan. 5 that it has transferred a drug candidate targeting a rare disease that suffers from severe appetite control dysfunction to Rhythm Pharmaceuticals in the United States.
The technology transfer agreement is worth a total of $350 million, including an upfront payment of $100 million. Upon successful commercialization, the company will receive royalties based on annual sales.
The candidate targets a rare form of obesity. Rare obesity is a disease characterized by a defect in the pathway of the satiety signaling gene, Melanocortin-4 Receptor (MC4R), resulting in abnormal appetite control and sustained obesity. Symptoms typically appear in childhood.
LB54640 is the world's first orally-administered MC4R agonist, and LG Chem confirmed dose-dependent weight loss trends and safety in a Phase 1 clinical trial.
Based on this, the drug 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 and begin recruiting patients in earnest.
LG Chem expects the partnership to accelerate the development of LB54640 and bring a more convenient treatment to patients sooner. Recruitment is one of the biggest challenges for orphan drugs, and LG Chem expects the technology transfer agreement with Rhythm Pharmaceuticals, which invests significant resources in identifying potential patients, to make development more efficient.
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 market.
"Rhythm Pharmaceuticals is the right partner for the successful development of LB54640," said Dr. Sohn Ji-Woong, Head of LG Chem's Life Science Business Unit. "Through active collaboration, we will bring safer and more effective new drugs to patients suffering from rare obesity worldwide in a timely manner."
"LG Chem's Phase 1 results with LB54640 confirm the potential to develop a novel drug with a high level of safety," said David Meeker, President of Rhythm Pharmaceuticals. "We look forward to expanding our portfolio of rare obesity drugs to provide optimal treatment options for each patient."
