Yuhan Corporation Ends Joint Development of 4th Generation Targeted Cancer Drug with US Janssen

Reduction of 400 Billion KRW in Collectible Royalties
Continued Development of Reklaza Combination Therapy
1.076 Billion KRW Contract for HIV Drug Raw Material Supply

Yuhan Corporation announced on the 20th that it has decided to terminate the joint research and development of the 4th generation EGFR (epidermal growth factor receptor) targeted anticancer drug, a tyrosine kinase inhibitor (TKI), with Janssen Biotech, a subsidiary of the global pharmaceutical company Johnson & Johnson (J&J).

Accordingly, Yuhan Corporation has revised the terms of the technology transfer agreement signed with Janssen in 2018, reducing the milestone royalties payable based on drug development, approval, and sales from the original $1.205 billion (approximately 1.6 trillion KRW) by $350 million (approximately 400 billion KRW) to $900 million, and publicly disclosed the correction.

However, Yuhan explained that this contract revision does not affect the existing contract related to the 3rd generation EGFR targeted anticancer drug 'Rybrevant' (generic name: Lazertinib), which has already been licensed by the two companies, nor does it impact the development of combination therapy involving Rybrevant and J&J’s targeted anticancer drug 'Rybrevant' (generic name: Amivantamab).

Yuhan stated, "We understand that Janssen has judged that the need for further development of the 4th generation EGFR TKI has decreased due to the significant reduction in the incidence of EGFR secondary resistance mutations in patients treated with the combination therapy of Rybrevant and Rybrevant."

Since the technology transfer agreement with Janssen in 2018, Yuhan has received an upfront payment of $50 million and development milestone royalties of $100 million. Recently, with the combination therapy of Rybrevant and Rybrevant receiving approval from the U.S. Food and Drug Administration (FDA) and entering the commercialization stage, Yuhan is expected to receive an additional $60 million by early November.

Yuhan announced that despite the termination of the joint EGFR TKI development with Janssen, it plans to continue the development of follow-up drugs for Rybrevant domestically.

Meanwhile, on the same day, Yuhan also signed a contract with the U.S. pharmaceutical company Gilead Sciences for the supply of raw materials for HIV (human immunodeficiency virus) treatment drugs. The contract is valued at 107.6 billion KRW, accounting for 5.79% of Yuhan’s sales last year. The contract period extends until September 30 of next year.

Yuhan has been collaborating with Gilead Sciences since 2003 in areas including treatments for hepatitis B and C.