Daewoong to transfer techs for autoimmune disease to US pharma

South Korea's Daewoong Pharmaceutical announced on Friday that it has signed a technology export contract for the clinical development and commercialization rights of DWP213388, an autoimmune disease treatment, with US-based Vitali Bio.

The deal is worth up to a maximum of 640 billion won ($478 million), including an upfront payment of 14.7 billion won. The milestone payment based on clinical development and sales is up to 620 billion won. The technology usage fee (royalty) proportional to net sales is separate.

Vitali has acquired the rights to DWP213388 worldwide, except for Korea, Indonesia, Thailand, the Philippines, Vietnam and Malaysia.

The main indication of DWP213388 is autoimmune diseases, which are conditions that occur when the immune system attacks normal cells inside the body. DWP213388 is an orally administered treatment that simultaneously inhibits B cells and T cells, both of which are immune cells. It has received US Food and Drug Administration (FDA) approval for phase 1 clinical trials.

The latest contract also includes an option for Daewoong to transfer the technology of two candidate substances it is developing. If the option is exercised, the total technology export amount is 1.26 trillion won.

Write to Min Su Han at hms@hankyung.com