LG Chem has revised the technology export agreement for the rare obesity drug candidate “Vibamelagon” signed with a U.S. pharmaceutical company, significantly increasing the total consideration in return for lowering the royalty rate.

On the 3rd, LG Chem announced that it has expanded the size of its 2024 technology export agreement for “Vibamelagon” with U.S. pharmaceutical company Rhythm Pharmaceuticals from USD 305 million (approximately KRW 408.6 billion) to USD 855 million (approximately KRW 1.1454 trillion). In addition to the existing upfront payment of USD 100 million (approximately KRW 134.0 billion), it will receive an additional USD 350 million (approximately KRW 468.9 billion) in upfront payments in installments by 2029. Milestone payments tied to achieving sales targets have also increased by up to USD 200 million (approximately KRW 268.2 billion). In exchange, the royalty, which had been structured to rise as the number of indications for which the drug is used increased, has been fixed at 1% of Rhythm’s obesity drug sales.

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