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The Korea Herald
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THE INVESTOR
March 29, 2024

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Yuhan cancels cancer drug deal with Luoxin

  • PUBLISHED :December 28, 2016 - 11:23
  • UPDATED :December 29, 2016 - 15:39
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[THE INVESTOR] South Korean drug maker Yuhan has canceled its licensing deal with China’s Luoxin Biotechnology for a lung cancer drug candidate, the company said on Dec. 28.

Yuhan blamed the Chinese counterpart for the termination, citing delay in the final agreement of contract terms in a deal potentially worth US$120 million in milestones. 




“The contracting party has been making unilateral claims such as only requiring the technical data of the new drug without fully engaging in the negotiation to conclude the final agreement of the terms of the contract,” Yuhan said in a regulatory filing .

“We plan to take legal action against Luoxin Biotechnology including a compensation suit for failing to perform the contract.”

Shares of Yuhan shed 3.18 percent to trade at 198,000 won (US$163.95) as of 11 a.m.

In July, Yuhan signed an agreement with the Chinese pharmaceutical firm to jointly develop and sell YH25448, a new treatment for patients with non-small cell lung cancer.

The firm was expected to receive an upfront payment of US$6 million and subsequent milestone payments that amount to US$120 million from Luoxin.

This is the latest setback in a string of global deal cancellations this year for Korean drug makers, including Hanmi Pharmaceutical which faced the termination of an 850 billion won lung cancer treatment agreement with Boehringer Ingelheim because of patient deaths in September.

YH25448, which targets EGFR-mutation positive non-small cell lung cancer in patients resistant to existing therapies, is set to begin its phase 1 clinical trials in January.

By Park Han-na (hnpark@heraldcorp.com)

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