LG Chem's Rare Obesity New Drug Substance, Technology Export Worth Up to 400 Billion KRW

Rare Disease Due to MC4R Mutation
Candidate Substance 'LB54640' Rights Transferred to US Rhythm

LG Chem is accelerating the development of its rare obesity drug candidate 'LB54640' through technology export.

Researchers at LG Chem Life Sciences Division are conducting new drug research activities.
[Photo by LG Chem]

On the 5th, LG Chem announced that it had signed a contract with Rhythm Pharmaceuticals in the United States to transfer the global development and sales rights of LB54640. The total contract value is $305 million (approximately 400 billion KRW), consisting of an upfront payment of $100 million (approximately 130 billion KRW) and milestone payments of up to $205 million (approximately 270 billion KRW) based on development and commercialization stages. Royalties based on sales will also be received annually.

Rare obesity is a rare disease caused by defects in specific genes such as the melanocortin-4 receptor (MC4R) pathway, a satiety signal gene, which leads to abnormalities in appetite control. As a result, obesity progressively worsens, causing difficulties in normal social life. Symptoms typically appear during childhood.

LB54640 is being developed as the world's first oral MC4R agonist. In Phase 1 clinical trials, a dose-dependent trend of weight loss and safety were confirmed, and in October, Phase 2 clinical trials involving patients began in the United States. Rhythm Pharmaceuticals will take over the ongoing Phase 2 trials and proceed with active patient recruitment.

LG Chem expects that the development of LB54640 will accelerate through this partnership, enabling the drug to be provided quickly. A company official explained, "Rare drugs face the biggest development challenge in recruiting trial participants due to the small number of patients. We believe that partnering with Rhythm Pharmaceuticals, which is investing significant resources in identifying potential patients, will enable more efficient development."

Founded in Boston, USA, in 2010, Rhythm Pharmaceuticals was listed on the NASDAQ in 2017. In 2020, it commercialized ‘Imcivree’ (active ingredient setmelanotide), the world’s first FDA-approved MC4R agonist.

Jiwung Son, Head of Life Sciences Business Division at LG Chem, said, “Rhythm Pharmaceuticals is the optimal partner for the successful development of LB54640. Through active cooperation, we will provide safer and more effective new drugs in a timely manner to patients suffering from rare obesity worldwide.” David Meeker, CEO of Rhythm Pharmaceuticals, also stated, “Through the Phase 1 results of LB54640 from LG Chem, we confirmed the possibility of developing a new drug with a high level of safety. We will offer optimal treatment options for each patient by expanding our rare obesity drug portfolio.”

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