Aribio exports rights for oral dementia drug to China, worth up to 1 trillion KRW

Aribio announced on the 25th that it has signed an exclusive sales rights contract for the oral dementia treatment AR1001 in China with a Chinese pharmaceutical company, valued at up to 5.59 billion yuan (approximately 1.02 trillion KRW).

Photo by Lee Chunhee

Through this contract, Aribio will first receive an advance payment of 120 billion KRW sequentially starting from mid-year. Subsequently, the company is expected to receive up to 900 billion KRW in total, including milestone payments for clinical development and approval stages, as well as royalties from sales over a certain period.

This export contract to China is the second sales rights agreement following the prior contract with Samjin Pharmaceutical for domestic manufacturing and sales rights, valued at up to 100 billion KRW (with a contract deposit of 10 billion KRW). The company stated, "Recently, as the number of dementia patients in China has surged, there have been companies continuously seeking to secure early adoption and preemption of AR1001. The contracting company is currently negotiating sales rights contracts with multiple countries, and considering the competitive market situation in China, it has decided to disclose details at a later time."

AR1001 aims to be an oral dementia treatment with multiple mechanisms of action. It is explained to have strong phosphodiesterase (PDE)-5 inhibitory effects that suppress dementia progression and improve patients' memory and cognitive functions. It treats patients through mechanisms such as inhibiting the production of amyloid-beta protein, which is considered a key factor in Alzheimer's dementia.

Currently, AR1001 is undergoing Phase 3 clinical trials targeting a total of approximately 1,150 participants in the United States, South Korea, the United Kingdom, Europe, and China. Administration has already begun in the United States and South Korea. The UK recently received approval for the clinical trial plan, and the plan is to obtain clinical trial approvals soon in seven European countries and China to proceed with administration.

Jaejun Jung, CEO of Aribio, said, "The large-scale sales rights contracts in South Korea and China will serve as a positive signal for future expansion contracts by continent, including Asian countries, the Middle East, South America, Europe, and the United States." He added, "Considering the urgency and importance of dementia treatments with significant unmet needs, we will accelerate efforts toward final clinical success, new drug approval, and launch."