Dong-A ST Signs Global License-Out and Equity Investment Agreement with US Neurobo Pharmaceuticals

Innovative New Drugs DA-1241·DA-1726
Accelerating Global Development and Commercialization
Conditional Acquisition Agreement of Neurobo Shares
Securing Global R&D Hub Upon Signing

[Asia Economy Reporter Lee Gwan-joo] Dong-A ST announced on the 15th that it has signed a global license-out (L/O) and equity investment agreement with NeuroBo Pharmaceuticals in the United States.

Under this agreement, Dong-A ST will transfer the worldwide exclusive development rights and worldwide exclusive sales rights excluding Korea of the type 2 diabetes and non-alcoholic steatohepatitis (NASH) treatment 'DA-1241' and the obesity and NASH treatment 'DA-1726' to NeuroBo. In addition, Dong-A ST will receive upfront payments, milestone payments, and royalties based on sales, and will be responsible for producing clinical samples and commercial products. NeuroBo will handle global clinical trials, approvals, and sales.

The upfront payment of $22 million will be acquired as NeuroBo's convertible preferred shares, and development milestones of up to $316 million can be received upon achieving product approvals and other targets. Furthermore, commercial milestones (undisclosed) will be received in stages based on cumulative net sales after commercialization.

Along with this, Dong-A ST plans to invest $15 million in NeuroBo to acquire additional shares, securing a 50.8% stake and becoming the largest shareholder. However, as a condition for this agreement, NeuroBo must raise at least $30 million, including the $15 million invested by Dong-A ST. NeuroBo plans to raise funds through a public offering next month.

All of Dong-A ST's new drugs licensed out in this deal are being developed as first-in-class innovative drugs. DA-1241 activates 'GPR119,' which exists on the cell membranes of the intestines and pancreas, exerting effects such as blood sugar reduction, pancreatic beta-cell protection, and lipid metabolism improvement. Clinical significance was confirmed in a U.S. Phase 1b trial, and a global Phase 2 trial is currently planned.

DA-1726 is an obesity treatment in the oxyntomodulin analogue class, acting simultaneously on GLP-1 receptors and glucagon receptors to suppress appetite, promote insulin secretion, and increase basal metabolic rate peripherally, ultimately inducing weight loss. In nonclinical studies, it showed not only weight loss effects but also NASH treatment efficacy. Dong-A ST presented these nonclinical results in a poster at the American Diabetes Association meeting in June this year.

NeuroBo, a Nasdaq-listed company, is developing neuroscience-based natural product drugs and COVID-19 treatments. Through this agreement, Dong-A ST plans to accelerate new drug development and commercialization by leveraging NeuroBo's geographic advantage in Boston, USA, and its ease of fundraising as a Nasdaq-listed company, and to utilize NeuroBo as a global R&D forward base for the Dong-A Socio Group through equity acquisition.

Kim Min-young, President of Dong-A ST, said, "This agreement will combine the R&D capabilities of both companies to accelerate the development of excellent therapeutics," adding, "We will continue to strengthen our R&D capabilities and do our best to become a global pharmaceutical company through collaboration with external partners."

Gil Price, CEO of NeuroBo, stated, "Securing Dong-A ST's excellent pipeline is significant as it allows us to enter the highly marketable fields of NASH, obesity, and diabetes," and added, "We will successfully complete fundraising and start clinical trials and research of DA-1241 and DA-1726 as soon as possible."

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