Myungin Pharmaceutical has unveiled a new growth engine by showcasing its global drug pipeline ahead of its forthcoming initial public offering (IPO).

The company’s core pipeline is evenamide, a schizophrenia treatment candidate being developed jointly with Italian pharmaceutical company, Newron Pharmaceuticals.

Evenamide is a new drug candidate being developed for treatment-resistant schizophrenia (TRS) patients. Currently, about 30 percent of patients worldwide do not respond to existing antipsychotic drugs, yet treatment options for them are limited to drugs like Clozapine. Clozapine was originally developed by Novartis, and in Korea, Whanin Pharmaceutical and Dongwha Pharmaceutical market clozapine products.

Newron Pharmaceuticals initiated an international, multinational phase 3 clinical trial (ENIGMA-TRS) in August and has also received approval from the U.S. Food and Drug Administration for additional clinical trials. It plans to begin recruiting U.S. patients in the fourth quarter of this year. Topline results are expected to be announced in the second half of next year.

Evenamide is highly regarded for its market potential. Global research institutions estimate its peak sales could reach up to 1.7 trillion won ($1.2 billion). Notably, if the clinical trials succeed, the indication could expand beyond TRS to include patient groups showing a “partial response” to existing drugs, potentially increasing its sales potential even further.

Myungin Pharm holds exclusive rights for the Korean market and will oversee local clinical trials, regulatory approval, and commercialization. Funds from the IPO will be used to accelerate global development and establish a marketing foundation. Myungin Pharm plans to allocate 35 billion won from the IPO offering funds to new drug development, including the domestic phase 3 trial for evenamide.

Myungin Pharmaceutical is a mid-sized pharmaceutical company with a traditional strength in CNS (central nervous system) therapeutics, having established a domestic sales network related to this area. Should evenamide succeed in clinical trials and launch, the company is expected to build a foundation for handling sales and marketing based on its proprietary compounds, according to industry watchers.