LG Chem, Rhythm ink $305 million tech transfer deal for obesity treatment

An LG Chem researcher conducts test [LG CHEM]

LG Chem has inked a technology transfer deal worth up to $305 million with Boston’s Rhythm Pharmaceuticals for its oral obesity treatment candidate.

Under the deal, Rhythm Pharmaceuticals gets exclusive rights to develop and market the treatment, LB54640, globally.

The size of the deal is potentially $305 million, including a $100 million payment upfront and up to $205 million in milestone payments. LG Chem will receive additional royalties based on the drug’s future sales.

LB54640 is currently in Phase 2 clinical trials. In a Phase 1 trial on healthy overweight adults, the candidate demonstrated dose-dependent weight reductions. LB54640 also demonstrated a favorable safety profile in the trial, with no changes in blood pressure or heart rate observed and no hyperpigmentation observed, LG Chem said.

“Rhythm has pioneered the development and global commercialization of the first and best-in-class therapy for patients with hyperphagia and severe obesity,” said Son Jee-woong, president of LG Chem Life Sciences. “We believe Rhythm is the ideal partner because of its extensive genetic obesity database, a global network of clinical trial sites and investigators, track record of regulatory successes and — most importantly — because Rhythm values patients and addresses their urgent needs for care.”

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