Daewoong Pharmaceutical inks US$430 mln license-out deal

By Kim Han-joo

SEOUL, June 8 (Yonhap) -- South Korean drugmaker Daewoong Pharmaceutical Co. said Tuesday that it has signed a US$430 million license-out deal with U.S. pharmaceutical venture firm Neurogastrx Inc. to export the technology of its new gastroesophageal reflux disease treatment.

The deal calls for Daewoong to provide Neurogastrx with its technology for clinical development and approval of fexuprazan, the novel drug candidate for gastroesophageal reflux disease, in the United States and Canada, the local drugmaker said.

With the deal, Daewoong Pharmaceutical has signed technology deals with a total of four countries, including China, Brazil, and Mexico, which accounts for almost 40 percent of the global gastrointestinal disorder market.

The combined value of the deals the South Korean firm has inked with them already topped 1 trillion won (US$900 million).

The value of the deal includes milestone, Daewoong Pharmaceutical said.

Daewoong Pharmaceutical will also receive 5 percent of Neurogastrx's shares and an additional 8.5 percent stake to own a total of 13.5 percent following the U.S. venture firm's planned initial public offering (IPO).

Daewoong Pharmaceutical said fexuprazan, a class of potassium-competitive acid blockers (P-CABs), showed a 99 percent cure rate during the phase three clinical trials.

The novel drug is expected to win approval from local drug authorities soon, Daewoong Pharmaceutical said.

Neurogastrx is a privately held biopharmaceutical company developing transformative therapies for gastrointestinal disorders.

khj@yna.co.kr
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