Daewon Pharmaceutical said it held working-level negotiations with Cigala Healthcare Group, a Saudi healthcare company, to conduct joint clinical trials for TG Fenon (Ingredient: fenofibrate), an oral Covid-19 treatment.

TG Fenon is a hyperlipidemia drug that Daewon repurposed as a Covid-19 treatment.

The two companies agreed to start a phase 3 clinical trial as soon as Daewon completes phase 2 clinical trials for TG Fenon in the third quarter.

“Our intent and interest in the corona treatment drug that Daewon Pharm is developing is firm,” a Cigala official said. “We propose to carry out joint clinical trials as soon as possible to treat patients suffering from Covid-19 in the Middle East.”

A Daewon official also said, “As we are proceeding with the overall clinical schedule ahead of time, we will maximize the synergy effect between the two companies by speeding up the progress.”

Late last year, Daewon signed a memorandum of understanding with Cigala Healthcare Group after the latter showed interest in a joint clinical trial for TG Fenon as an oral corona treatment drug through a drug repurposing method.

According to Daewon, fenofibrate began to draw attention last July when the Israel’s Hebrew University of Jerusalem and New York’s Mount Sinai Medical Center said in a joint study that the agent could reduce the Covid-19 virus’ ability to reproduce.

In August, a joint study by the University of Birmingham in the U.K., the San Raffaele Scientific Institute in Italy, and the University of Copenhagen in Denmark showed that fenofibrate could reduce Covid-19 infection by up to 70 percent.

Daewon Pharmaceutical received approval from the Ministry of Food and Drug Safety in November for a phase 2 clinical trial plan to use the treatment for Covid-19.

The test aims to evaluate the safety and efficacy of TG Fenon in serious Covid-19 patients hospitalized or those who require hospitalization.