LG Chem Raises Bivamelagon Deal Value with U.S.-Based Rhythm
LG Chem has expanded the global technology export contract amount for ‘Vivamelagon’, a rare obesity treatment candidate, signed with the U.S.-based Rhythm Pharmaceuticals. The amount has increased from the previous $305 million to $855 million. The company increased the size of the additional upfron
On November 3 (October 2 local time), LG Chem announced an amendment to their technology export contract with U.S. biotechnology company Rhythm Pharmaceuticals. The agreement pertains to the global development and sales of 'Vivamelagon', an oral melanocortin-4 receptor (MC4R) agonist. Initially signed in 2024, the contract's value has increased from $305 million to $855 million.
The expansion includes an additional upfront payment of $350 million, spread over four years from 2026 to 2029, which, combined with the previous $100 million upfront payment, makes this the largest domestic technology export in LG Chem's history. In addition to the increased upfront payment, the contract's running royalties based on sales have been adjusted to a fixed rate of 1%. This change simplifies the calculation method and ensures royalties are paid beginning in January 2029, or earlier if Vivamelagon is launched.
Rhythm Pharmaceuticals, which specializes in rare diseases, is developing Vivamelagon as a treatment for rare obesity diseases like hypothalamic obesity, a condition resulting from hypothalamus dysfunction that leads to severe obesity due to appetite control issues. The amendment also expanded the total payment size by $200 million compared to the previous contract, providing milestone payments based on new drug development, approval, and sales performance of Vivamelagon.
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