LG Chem said that Transthera Bioscience, its Chinese partner, has received approval from the Chinese National Medical Products Administration (NMPA) to conduct a phase 2 clinical trial into LC510255, an autoimmune disease treatment candidate.

LG Chem will receive an undisclosed milestone from Transthera, which will recruit Chinese ulcerative colitis patients to evaluate the efficacy and safety of the drug.

The two companies also plan to accelerate the development of innovative autoimmune diseases by strengthening strategic partnerships based on their experiences and expertise in each region.

"The S1P1 receptor agonist is a promising new drug substance in the field of autoimmune diseases, and we will secure global competitiveness through close cooperation with partners," said Son Jee-woong, head of LG Chem's Life Science Business Division.

LC510255 is a new oral drug that promotes the expression of S1P1 (sphingosine-1-phosphate receptor-1), a protein that regulates hypersensitivity immune function. LG Chem had confirmed the selective action on S1P1 protein.

According to global market research data, the Chinese ulcerative colitis treatment market will grow from 220 billion won ($184.9 million) in 2020 to 280 billion won in 2028. There are about 430,000 patients with ulcerative colitis in China, with an estimated 80 percent of them requiring active drug treatment due to the severity of the disease.