Aribio Signs Global Exclusive Licensing Deal for Alzheimer's Drug with Puxing Pharmaceutical

From the third on the left: Chen Yuqing, Chairman of Pushing Pharmaceutical; Jaejun Jung and Soo Hyun Sung, Co-CEOs of Arribio; Byeonggeon Lee, Special Advisor. Provided by Arribio

Aribio announced on May 14 that it has signed an exclusive licensing agreement with Chinese global pharmaceutical company Puxing Pharmaceutical for the global development, approval, production, and commercialization of the oral Alzheimer's disease treatment "AR1001." According to the company, the total value of this contract is USD 4.7 billion (approximately KRW 7 trillion), making it the largest deal related to Alzheimer's treatments in the Korean bio industry. The two companies held a signing ceremony in Shanghai, China.

Through this agreement, Puxing Pharmaceutical has secured exclusive sales rights for AR1001 in global markets, excluding Korea, the Middle East, and Central and South America. The scope of their cooperation, which previously focused on China and ASEAN regions, has now been expanded to major global markets, including the United States, Europe, and Japan. It has also been reported that both parties are discussing strategic investment options in Aribio.

Aribio will first receive an option fee of USD 60 million (about KRW 90 billion). In addition, the company will receive a further USD 80 million (about KRW 120 billion) upon the announcement of topline results from the global Phase 3 clinical trial, securing a total of USD 140 million (about KRW 210 billion) in upfront payments in stages. Subsequently, Aribio will also be eligible for milestone payments for each stage of approval and commercialization, as well as royalties of up to 20%.

AR1001 is an oral Alzheimer's treatment developed in-house by Aribio and belongs to the PDE-5 inhibitor class. It is recognized as the world's first disease-modifying therapy that can control the progression of the disease itself. Unlike treatments that merely relieve symptoms, AR1001 is characterized by its approach to addressing the underlying causes of Alzheimer's disease.

Currently, AR1001 is undergoing the global Phase 3 clinical trial "POLARIS-AD" involving more than 1,500 patients in the United States, Europe, United Kingdom, China, Korea, and other regions. The topline results from the trial are scheduled to be released within this year.

This treatment candidate targets multiple mechanisms simultaneously, including amyloid plaque removal, inhibition of abnormal tau proteins, reduction of neuroinflammation, improvement of cerebral blood flow, and protection of nerve cells. According to Aribio, clinical data collected up to now has confirmed its safety, its ability to cross the blood-brain barrier (BBB), and its potential to improve cognitive function in early-stage patient groups.

Aribio has established a foundation for commercialization that spans major global markets through this agreement. In particular, the company is being recognized for securing a large-scale deal even before the completion and topline announcement of the global Phase 3 clinical trial, thereby demonstrating the commercial viability and competitive edge of AR1001's development.

With this latest agreement, the accumulated scale of AR1001's global exclusive licensing deals signed by Aribio has reached approximately KRW 10 trillion.

Jaejun Jung, Co-CEO of Aribio, stated, "This agreement is more than just a technology transfer. It is the result of 15 years of accumulated R&D capability and technological expertise being recognized in the global market." He added, "By collaborating with Puxing Pharmaceutical, we will deliver new treatment opportunities to patients worldwide more quickly."

Guo Guangchang, Chairman of Puxing Group, commented, "AR1001 is an asset with both innovation and global potential. I hope our two companies will together create a new paradigm in the global Alzheimer's treatment market."

Chen Yuqing, Chairman of Puxing Pharmaceutical, also remarked, "AR1001 is an innovative new drug candidate with strong competitiveness in the global Alzheimer's treatment market. If the Phase 3 clinical results are positive, it has ample potential to become a game changer in the global market."

Meanwhile, Aribio is currently in the process of merging with KOSDAQ-listed Solux, with the merger scheduled for August 11.

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