LG Chem inks deal with Innovent Biologics for gout treatment candidate

LG Chem researchers conduct tests at the company's lab. [LG CHEM]

LG Chem inked a technology transfer deal worth up to $95.5 million with Nanjing-based Innovent Biologics for Tigulixostat, a gout treatment candidate.

Under the deal, HKEX-listed Innovent Biologics gets exclusive rights to develop and market the gout treatment in China, while LG will keep the rights in other countries.

The size of the deal is potentially $95.5 million, including a $10-million payment up front and up to $85.5 million in milestone payments. LG Chem will receive additional royalties based on the drug’s future sales.

Tigulixostat is an orally active, non-purine selective xanthine oxidase inhibitor. It lowers the production of uric acid, and thus targets gout patients with hyperuricemia.

LG Chem is currently undergoing global Phase 3 clinical trials of the candidate on 3,000 patients in the United States and some European countries.

"We will endeavor to market the gout treatment based on the experience and expertise of two companies," said Son Jee-woong, head of life science business at LG Chem. "LG Chem will take a leap forward in becoming global pharmaceutical company by constantly expanding our pipeline through aggressive investment."

BY SARAH CHEA [chea.sarah@joongang.co.kr]