Daewoong Pharmaceutical, Tech Export of New Drug for Pulmonary Fibrosis to Chinese-speaking Regions... Up to 413 Billion KRW

PRS Inhibitor 'Bersiporocin'
Technology Export Contract to Greater China Including China, Hong Kong, and Macao

Jeon Seung-ho, CEO of Daewoong Pharmaceutical (left), and Darren Mulser, CEO of CS Pharmaceuticals, are taking a commemorative photo after signing the contract. Photo by Daewoong Pharmaceutical

[Asia Economy Reporter Myunghwan Lee] Daewoong Pharmaceutical announced on the 31st that it has signed a technology licensing agreement for the idiopathic pulmonary fibrosis (IPF) drug 'Versiporocin' with UK-based CS Pharmaceuticals (CSP) for the Greater China region. The contract is valued at up to $336 million (approximately 413 billion KRW), covering China, Hong Kong, Macau, and other Greater China territories, with expanded indications including idiopathic pulmonary fibrosis.

Daewoong Pharmaceutical explained that this technology licensing agreement for Versiporocin in the Greater China region is significant as it marks the first global expansion of their innovative new drug. Through this agreement, Daewoong Pharmaceutical will receive up to $76 million (approximately 93.4 billion KRW) in upfront payments from CSP and royalties in double-digit percentages based on annual net sales. CSP will be responsible for clinical development and commercialization of Versiporocin in the Greater China region.

CSP is a global pharmaceutical company specializing in rare diseases, focusing on product development and commercialization within the Greater China market. Recently, it has been expanding its portfolio in rare diseases such as fibrosis and in ophthalmology.

Idiopathic pulmonary fibrosis is a disease in which the lungs gradually harden and lose function due to excessively produced fibrous tissue. It is known as a rare disease with a five-year survival rate below 40% after diagnosis, making treatment difficult. Currently marketed IPF treatments by multinational pharmaceutical companies cannot completely halt disease progression, and high discontinuation rates due to side effects leave significant unmet medical needs.

Versiporocin is the world's first PRS (Prolyl-tRNA Synthetase) inhibitor antifibrotic drug developed independently by Daewoong Pharmaceutical. It is expected to exhibit antifibrotic effects by reducing the activity of the PRS protein, which influences collagen production, thereby suppressing excessive collagen generation that causes fibrosis.

Daewoong Pharmaceutical's Versiporocin received approval for multinational Phase 2 clinical trials in the United States and South Korea last year. Additionally, it has been designated as a Fast Track development item by the U.S. Food and Drug Administration (FDA) and selected as a supported project by the National New Drug Development Program in Korea, accelerating its research and development.

Daewoong Pharmaceutical plans to continue achieving world-first innovative new drug results this year through Versiporocin and other products. Seungho Jeon, CEO of Daewoong Pharmaceutical, stated, "We have high expectations as we signed an exclusive licensing agreement with CSP for the Greater China region to accelerate the global development of Versiporocin. We will leverage this technology licensing contract in the Greater China region as a stepping stone to become a game changer in the global pharmaceutical industry within the $6.1 billion idiopathic pulmonary fibrosis treatment market."

Darren Mercer, CEO of CSP, said, "Idiopathic pulmonary fibrosis is a critical rare disease in China, where more than half of patients die within 2 to 3 years after diagnosis. Securing the exclusive licensing agreement for Versiporocin in the Greater China region is therefore highly significant. We have great expectations for strengthening our rare disease portfolio through this contract and for the Phase 2 clinical trial results of Versiporocin for idiopathic pulmonary fibrosis, expected to be completed in the first half of 2024."