LG Chem revises licensing deal with US firm for obesity drug
LG Chem, Korea's leading chemical company, said Tuesday it has amended an exclusive license agreement with the U.S.-based Rhythm Pharmaceuticals for the development and commercialization of an obesity treatment. The amendment covers Bivamelagon, an investigational oral small-molecule melanocortin-4 receptor (MC4R) agonist, increasing the total contract value from $305 million to $855 million, the…
LG Chem, the prominent South Korean chemical company, announced on Tuesday that it has revised the exclusive licensing deal it holds with the U.S.-based Rhythm Pharmaceuticals. This agreement pertains to the development and commercialization of an obesity treatment known as Bivamelagon. This investigational oral small-molecule melanocortin-4 receptor (MC4R) agonist has seen its total contract value surge from $305 million to $855 million, according to a press release from LG Chem.
The company has already contributed $100 million to Rhythm under this agreement. Additional upfront payments amounting to $350 million are set to be made through 2029, the company disclosed. MC4R agonism has demonstrated the potential to significantly impact individuals struggling with hyperphagia and severe obesity associated with rare MC4R pathway diseases, as stated by Rhythm CEO David Meeker in a separate press release.
Meeker emphasized that the company's commitment to this program highlights confidence in Bivamelagon's capacity to bring about meaningful benefits for patients and generate substantial long-term value for shareholders. LG Chem's objective is to expedite the availability of this innovative treatment for rare obesity-related disorders, as expressed in the company's statement.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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