MedPacto, a Kosdaq-listed biotech company, said Monday that MP2021, its new drug candidate for treating bone diseases, has been selected for the National New Drug Development Project.

MP2021 was finally included in the third round of support for non-clinical development by the Korea Drug Development Foundation (KDDF). MedPacto will receive 1.5 billion won ($1.1 million) in research funding for two years.

Medpacto aims to enter phase I clinical trials or technology transfer next year.

According to MedPacto, MP2021 inhibits inflammation and hinders bone loss by fundamentally preventing the formation of multiple bone-dissolving osteoclasts. Existing treatments for arthritis and bone disease work by inhibiting inflammation or osteoclast growth factors.

Medpacto recently completed animal testing of MP2021 and presented the results at the American College of Rheumatology in San Diego, Calif., last month.

"The selection of this non-clinical project for MP2021 recognizes our technology and development capabilities," a MedPacto official said. "We will accelerate the entry of MP2021 into phase 1 based on our extensive clinical experience with Vactosertib."