Daewoong's US Partner Secures $60 Million Investment... "Phase 3 Trial of Pexsuprazan to Begin Next Year"

Daewoong Pharmaceutical Headquarters Building Exterior (Photo by Daewoong Pharmaceutical)

[Asia Economy Reporter Chunhee Lee] Daewoong Pharmaceutical's gastroesophageal reflux disease (GERD) treatment new drug 'Pexuprazan' is expected to gain momentum in its Phase 3 clinical trials in the United States next year, following a large-scale investment secured by its U.S. sales partner.

Daewoong Pharmaceutical announced on the 7th that Neurogastrx, its U.S. sales partner, successfully raised $60 million (approximately 69.5 billion KRW) in a Series B funding round. This investment was led by Vivo Capital, with existing investors including 5AM Ventures, Venbio, and Obimed, who are top venture capital groups in the healthcare sector, joined by new investors RTW Investment, Samsara BioCapital, and Marshall Wace. Through this, Neurogastrx has secured over $100 million in total funding, combining the $45 million (approximately 52.1 billion KRW) Series A investment received in 2018.

Neurogastrx is a specialized company in gastrointestinal disease treatments, led by executives with development experience at global pharmaceutical companies such as Pfizer, Roche, Amgen, GSK, and Ironwood. In June, it signed a technology licensing agreement with Daewoong Pharmaceutical, taking responsibility for the clinical trials, development, approval, and sales of Pexuprazan in the U.S. and Canada. Through the agreement, Daewoong Pharmaceutical received a 5% stake in Neurogastrx, which will increase to a confirmed 13.5% stake based on the timing of Neurogastrx's IPO.

Based on this investment, Neurogastrx plans to initiate Phase 3 clinical trials of Pexuprazan in the U.S. starting next year. Additionally, it aims to accelerate the development of its main pipeline of gastrointestinal disease treatments.

Jim O'Mara, CEO of Neurogastrx, said, "We have made significant progress over the past year, including establishing a partnership with Daewoong Pharmaceutical for the development of Pexuprazan in North America. We are especially pleased to be able to offer effective treatment options to millions of patients suffering from gastrointestinal diseases."

Seungho Jeon, CEO of Daewoong Pharmaceutical, stated, "The Series B funding round of Neurogastrx reflects the high potential for success of Pexuprazan as a treatment for GERD in the U.S. We will continue to do our best to develop Pexuprazan into the world's best treatment in collaboration with Neurogastrx."