Daewoong Pharmaceutical licenses out autoimmune disease candidate to US firm

Daewoong Pharmaceutical said Friday it entered into a licensing agreement with Vitalli Bio, a subsidiary of Aditum Bio - a U.S. biotechnology investment firm - for DWP213388, a potential treatment for autoimmune diseases.

The licensing agreement occurred during the "Korea-U.S. Digital and BioHealth Business Forum" held in Boston, U.S., on Thursday, local time.

Under the accord, Daewoong will transfer the rights to the global development and commercialization of DWP213388 to Vitalli Bio, with the exception of certain Asian territories, including Korea.

Vitalli Bio will provide an upfront payment of $11 million to Daewoong and will provide additional milestone payments of up to $477 million, depending on the development stage of the drug.

If Vitalli commercializes DWP2133388, Daewoong can also receive royalties based on sales.

In addition to DWP213388, the agreement includes an option to license out two new drug candidates being developed by Daewoong.

DWP213388 is an oral autoimmune therapy with a mechanism of action that selectively inhibits both Bruton's Tyrosine Kinase (BTK) and Interleukin-2-inducible T-cell Kinase (ITK), target proteins involved in the activation of immune cells such as B and T cells.

Unlike existing therapies that inhibit either B or T cells, DWP213388 is the first-in-class drug that can target both BTK and ITK.

Daewoong received investigational new drug (IND) approval from the U.S. Food and Drug Administration (FDA) for a phase 1 clinical trial in August of last year.

The drug has also demonstrated superior therapeutic efficacy to existing drugs in animal models of various autoimmune diseases, including rheumatoid arthritis, an incurable autoimmune disease.

"We are pleased that this agreement once again demonstrates the excellence of DWP213388, as well as Daewoong's drug development technology," Daewoong CEO Jeon Seng-ho, said. "We will continue to introduce innovative new drugs that are recognized in the global pharmaceutical market."

Aditum Bio Managing Director Joe Jimenez also said, "We are impressed with Daewoong's R&D capabilities and look forward to bringing new therapies to patients in need of treatment through this partnership."