April 20, 2024

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[THE INVESTOR] Yungjin Pharmaceutical said on May 2 it has reached an exclusive licensing agreement with Swedish drug maker NeuroVive Pharmaceutical to develop its experimental compound for generic disorders in the US and Europe.

Under the deal, NeuroVive will have rights to develop KL1333, orphan mitochondrial disease treatment, and exclusive global marketing rights, except in Korea and Japan. The Korean firm will retain the marketing license for the two countries. 

“NeuroVive is an ideal partner as it has experience in developing mitochondrial disease treatments,” said Park Su-jun, chief executive officer of Yungjin.

The Sweden-based biotech firm will make upfront payments of US$3 million in total -- US$1 million each at signing, one year after the contract and completion of a successful phase 1 clinical trials.

NeuroVive will make additional payments up to US$54 million based on reaching regulatory milestones.

Following an approval from the Ministry of Food and Drug Safety, Yungjin is preparing to enter phase 1 clinical studies on the component.

Mitochondrial diseases, an inherited chronic illness, result from failures of the mitochondria, which are responsible for creating more than 90 percent of the energy needed by the body to sustain life and support organ function.

KL1333 is designed to boost NAD+, a molecule that plays a key role in mitochondrial activity to treat the core energy problems caused by the generic disorder.

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