Neurogastrx, Inc. has entered into an exclusive license agreement with Daewoong Pharmaceutical Co., Ltd., of Seoul, South Korea, for the development and commercialization of fexuprazan. Fexuprazan is a investigational novel potassium-competitive acid blocker (P-CAB). It is used for the treatment of erosive esophagitis (EE) and other acid-related conditions.
Under the terms of this agreement, Daewoong Pharmaceutical will take a significant equity stake in Neurogastrx, ramping to 13.5% ownership (Daewoong has received a 5 percent equity stake in Neurogastrx as part of the deal and will obtain an additional 8.5 percent share when the firm proceeds with an initial public offering in the future) upon an initial public offering (IPO). Neurogastrx has the exclusive right to develop and commercialize fexuprazan in the U.S. and Canada. Other financial terms of the agreement are not being disclosed.
Under the contract worth $430 million in total, Daewoong will receive milestone payments of undisclosed amounts when stages are completed in the drug’s development process in the US, in addition to royalties based on its future sales in the US and Canada.
Daewoong Pharmaceutical successfully completed a Phase 3 trial with fexuprazan for the treatment of EE in South Korea and will seek marketing approval in that country. Neurogastrx plans to initiate pivotal clinical development for fexuprazan in the U.S. in 2022.
About Neurogastrx, Inc.
Neurogastrx, Inc. is a privately held specialty pharmaceutical company developing transformative therapies to advance the treatment of GI disorders for which meaningful therapeutic innovation is required to satisfy unmet patient need and disease burden. In addition to fexuprazan, Neurogastrx is developing NG101, a dopamine D2 receptor antagonist that is currently in Phase 2 development for the treatment of gastroparesis, a debilitating GI disorder affecting the lives of about 10 million people in the U.S.
About Daewoong Pharmaceutical. Co., Ltd.
Established in 1945, Daewoong Pharmaceutical Co., Ltd. is a leading South Korean pharmaceutical company that develops, manufactures, and commercializes pharmaceuticals for both domestic and international markets. With its strong and competent in-house R&D and qualified manufacturing facilities, Daewoong provides a total healthcare solution to customers across the globe. Aiming to become a global healthcare company, Daewoong has broadened international operations by establishing branch offices and research centers throughout Asia and the United States. Also, Daewoong has established strategic partnerships in more than 100 countries worldwide.