Genensel Signs Licensing Agreement with UAE Ordipharma for COVID-19 Treatment Rights

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[Asia Economy Reporter Lee Gwan-joo] Genencell announced on the 25th that it has signed a Memorandum of Understanding (MOU) with Ordi Pharma FZ-LLC in the United Arab Emirates (UAE) for the licensing rights transfer of the oral COVID-19 treatment and shingles treatment drug 'ES16001.'

ES16001 is a new drug candidate based on a novel material extracted from the native Korean plant Dambalsu. It is currently undergoing clinical trials in Korea for COVID-19 and shingles as indications. Its mechanism inhibits the binding of the RBD (receptor-binding domain) of the SARS-CoV-2 virus to the ACE2 receptor of host cells. Currently, the drug is being supplied to clinical institutions domestically.

Genencell has agreed to enter into a license-out agreement granting Ordi Pharma the rights for development, manufacturing, and commercialization of ES16001 in the Middle East and Turkey regions. They are currently negotiating the upfront payment, royalties, and export methods.

Ordi Pharma is a subsidiary of DEM Pharmaceuticals, which produces and sells over 70 specialty drugs including antivirals and immunomodulators. DEM Pharmaceuticals is one of the top pharmaceutical companies in Turkey and maintains active business exchanges with Korean pharmaceutical companies.

Genencell’s strategy is to sell ES16001 in Turkey as an herbal medicine without requiring additional clinical trials, while entering the Middle East market with a prescription drug form. If local clinical trials are necessary, Ordi Pharma is expected to cover the related costs, and negotiations are ongoing in this regard.

For exports, options under consideration include production and supply of finished products by Korea Pharma, Genencell’s domestic manufacturing partner, or providing active pharmaceutical ingredients after technology transfer. Chairman Kang Se-chan of Genencell’s Technology Management Committee (Professor of Life Sciences at Kyung Hee University) and others are scheduled to visit the region next month to finalize the main contract, where specific amounts, export methods, and schedules are expected to be confirmed.

This contract also grants Ordi Pharma the right of first negotiation for another new drug candidate 'APRG64' being developed by Genencell’s affiliate APRG.

Chairman Kang said, “This contract is being pursued with consideration of both the pandemic and endemic phases, and it is significant as it establishes a foothold for exporting domestic natural product drug technology worldwide, including Europe. This achievement was possible thanks to active support from Kyung Hee University for research and development and export commercialization.”

Genencell CEO Lee Sung-ho stated, “We expect this to be the first case of a COVID-19 treatment developed in Korea being exported overseas. We will do our best to successfully conclude the main contract and ensure smooth supply of the pharmaceutical products.”

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