Daewoong Pharmaceutical said on Monday that it terminated the exclusive license agreement with Neurogastrx initially intended for the clinical development and commercialization of Fexuclue (ingredient: fexuprazan) in the U.S. and Canada.

Fexuclue is Daewoong Pharmaceutical’s gastroesophageal reflux disease (GERD) treatment based on potassium-competitive acid blocker (P-CAB) which has grown rapidly by improving the shortcomings of existing proton pump inhibitor (PPI) drugs.

With Fexuclue already starting sales in Korea last year, Daewoong Pharmaceutical decided to terminate the contract signed in June 2021 because it needed a strategic partner to quickly develop Fexuclue for multiple indications in North America. Neurogastrx also agreed to terminate the contract after deciding that the development of Fexuclue was no longer in line with its strategic business plan.

Consequently, Daewoong Pharmaceuticals has regained all rights to the clinical development and commercialization of Fexuclue in the U.S. and Canada and will also retain the 5 percent equity stake in Neurogastrx that it acquired in the agreement.

Accordingly, Daewoong Pharmaceutical is seeking a multinational pharmaceutical partner that can simultaneously conduct clinical trials not only in North America but also in Europe and Japan to accelerate entry into the main global markets.

"As P-CAB is receiving attention from medical practitioners around the world, we are communicating with multiple multinational pharmaceutical companies that can quickly establish Fexuclue in the global market," said Daewoong Pharmaceutical CEO Jeon Seng-ho. "By securing additional indications for Fexuclue in the global market and accelerating formulation development, we aim to develop it into a best-in-class drug that can achieve 1 trillion won ($764 billion) in sales by 2030."