Chong Kun Dang Signs Technology Export Deal Worth 1.7 Trillion KRW with Novartis... "Largest Since Establishment"

HDAC6 Inhibitor Candidate 'CKD-510'
Development and Commercialization Rights Transferred Excluding Korea
Worth 1.73 Trillion KRW

Chong Kun Dang announced on the 6th that it has signed a technology export contract worth $1.305 billion (approximately 1.73 trillion KRW) with global pharmaceutical company Novartis for the new drug candidate 'CKD-510.' This technology export is the largest in Chong Kun Dang's history.

Exterior view of the Chong Kun Dang headquarters.
[Photo by Chong Kun Dang]

Under this contract, Novartis will have exclusive rights worldwide, excluding South Korea, for the development and commercialization of CKD-510, a low-molecular-weight compound histone deacetylase 6 (HDAC6) inhibitor developed by Chong Kun Dang.

Chong Kun Dang will receive an upfront payment of $80 million (approximately 106.1 billion KRW) and milestone payments totaling $1.225 billion (approximately 1.6241 trillion KRW) based on development and approval stages, as well as sales royalties. The contract period is from November 6, 2023, until the expiration of royalties. The royalty expiration date is the latest of 10 years after the first launch, patent expiration, or exclusivity expiration.

CKD-510 is a new drug candidate developed by Chong Kun Dang, an HDAC6 inhibitor applying the highly selective non-hydroxamic acid (NHA) platform technology. Preclinical studies have confirmed its efficacy in related diseases such as cardiovascular diseases. Phase 1 clinical trials conducted in Europe and the United States have demonstrated safety and tolerability.

Kim Young-joo, CEO of Chong Kun Dang, said, "Chong Kun Dang has experience in technology export with the anemia treatment biosimilar Nesvel to Japan and the diabetes treatment new drug Duvie to the United States." He added, "This contract is the largest ever, and we feel proud to export one of the innovative new drug candidates developed through consistent investment of over 12% of annual sales in research and development to a multinational company. I am grateful to our researchers."

Lee Mi-yeop, Head of Product Development at Chong Kun Dang, said, "We expect Novartis to develop CKD-510 into a global new drug based on its long-standing new drug development know-how and commercialization capabilities." He added, "Chong Kun Dang will use this contract as momentum to accelerate clinical trials of core new drug candidates and continue to achieve results as soon as possible."

Meanwhile, Chong Kun Dang plans to develop various disease treatments using the HDAC6 platform developed with its own technology. It is also accelerating the development of the bispecific antibody anticancer biopharmaceutical 'CKD-702' and the dyslipidemia treatment 'CKD-508,' both currently in Phase 1 clinical trials.

Chong Kun Dang's strategy is to expand its new drug development scope to advanced biopharmaceuticals such as gene therapy and antibody-drug conjugate (ADC) anticancer drugs, focusing on developing first-in-class new drugs and medicines addressing unmet medical needs within its group.

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