LG Chem exports latest rare obesity drug technology

[Courtesy of LG Chem]

South Korea’s LG Chem Ltd. announced Friday that it signed an agreement with U.S. pharmaceutical company Rhythm Pharmaceuticals Inc. to transfer the global development and sales rights of its new drug candidate substance ‘LB54640’ for rare obesity.

The agreement includes an upfront payment of $100 million and up to $250 million in development and commercialization milestone payments, for a total agreement value of $350 million. LG Chem will also receive royalties based on annual sales.

Rare obesity is a disease where the appetite is not properly regulated due to abnormalities in the ‘MC4R’ pathway. MC4R is a gene that sends satiety signals, leading to severe obesity, with rare obesity symptoms typically manifesting during childhood.

LB54640 is an orally administered MC4R agonist that has shown weight loss tendency and safety in Phase 1 clinical trials in the United States, according to LG Chem. It is currently in Phase 2 clinical trials in the country.

LG Chem expects that the latest technology export will speed up LB54640’s development. Treating rare diseases is challenging due to the small number of patients, but efficient development is made possible through the export to the United States, where clinical trial recruitment can be more effective.

“Rhythm Pharmaceuticals is the optimal partner for the successful development of LB54640,” Son Ji-woong, head of LG Chem’s Life Sciences division, said. “We will provide a safer and more effective new drug to patients suffering from rare forms of obesity around the world in a timely manner via this active collaboration.”

Rhythm Pharmaceuticals, founded in 2010 in Boston, the United States, was listed on the Nasdaq in 2017. The company came under the spotlight for successfully developing and commercializing ‘IMCIVREE,’ the world’s first MC4R agonist.