MedPacto Secures 100 Billion KRW Investment for Rare Drug Clinical Trial Funding

Goal to Initiate Regulatory Clinical Trials for Three Rare Intractable Diseases Next Year
Full-Scale Two-Track Strategy for Early Commercialization of Rare Intractable Disease Treatments and Technology Transfer to Global Pharmaceutical Companies

[Asia Economy Reporter Eunmo Koo] MedPacto, a biomarker-based innovative drug development company, announced on the 24th that it will issue convertible preferred shares (CPS) and privately placed convertible bonds (CB) to secure funds for conducting clinical trials for the approval of Bactosertib for rare and intractable diseases.

The fundraising scale is approximately 100 billion KRW, with 30 billion KRW issued as third-party allocated CPS and 70 billion KRW issued as privately placed CB. The company explained that investment attraction was quickly completed as the value of Bactosertib as an innovative drug and the strategy to advance approval clinical trials for rare and intractable diseases were positively evaluated.

MedPacto plans to use the secured funds for approval clinical trials targeting rare and intractable diseases. Currently, MedPacto is undergoing the Orphan Drug Designation (ODD) process for the combination therapy of Bactosertib and Imatinib aimed at treating desmoid tumors. With the orphan drug designation, MedPacto plans to secure seven years of market exclusivity as well as proceed with fast track and expedited review.

For example, Epizyme in the U.S. developed 'Tazverik' targeting epithelioid sarcoma, which had no treatment, received orphan drug designation, and obtained FDA approval based on Phase 2 clinical results from about 60 patients.

As rare and intractable disease treatments can be approved early with a small number of clinical patients, MedPacto plans to pursue orphan drug designation for desmoid tumors in the first half of next year, along with fast track status and IND approval for multinational approval clinical trials in Korea, the U.S., and other countries.

Additionally, MedPacto plans to start approval clinical trials for two rare and intractable diseases including osteosarcoma in the second half of next year to expand indications. MedPacto will also accelerate its entry into the orphan drug market by expanding the application range of Bactosertib to multiple rare and intractable diseases as well as colorectal cancer and non-small cell lung cancer.

A MedPacto official stated, “We plan to actively pursue technology transfers for combination therapies with immuno-oncology drugs such as colorectal cancer and non-small cell lung cancer, and to commercialize early through approval clinical trials for rare cancers such as desmoid tumors, employing a two-track business strategy,” adding, “MedPacto will become a global pharmaceutical company combining business stability and growth potential in the future.”

This content was produced with the assistance of AI translation services.