Samil Pharmaceutical signed an agreement on Tuesday with San Diego-based biotech company Biosplice to develop and sell the latter’s osteoarthritis treatment, Lorecivivint, in Korea.

The total contract size is $70 million, including $10 million milestones at every clinical trial stage and approvals. Besides, the U.S. company will receive two-digit royalties, according to a news release distributed by Samil.   

Lorecivivint can become the first drug to improve knee pain and affect improving knee structures, it said. As a CLK/DYRK Kinase suppressant, Lorecivivint has a mechanism for controlling the Wnt pathway. 

The drug is under Phase 3 clinical trial in the U.S. Samil has proved its efficacy in improving knee pain and function in the long term. The company's research team had found the effects after a 52 week X-ray results through Phase 2 clinical trial’s first injections. The research team also found the inner knee joint space improvement and is developing it as a disease-modifying osteoarthritis drug (DMOAD).  

“We are happy to collaborate with Samil Pharmaceutical in developing and selling Lorecivivint in Korea,” said Erich Horsely, Biosplice’s chief business officer. “It is an important step to tie up with the partner from a well-established region and  maximize the potential for the globalization of Lorecivivint.”

He also went on to say, “We expect to send hopes to millions of OA patients with our first DMOAD in the world, in cooperation with Samil Pharma.”

Samil, which has strengths in musculoskeletal, digestive, liver and eye diseases, expects the collaboration with Biosplice will enhance its advantages in the muscle and skeletal treatments, a company official said.