China-based Livzon Pharmaceutical Group Inc. (HKG: 1513) has announced a licensing agreement with South Korean firm Onconic Therapeutics. Under the agreement, Livzon has secured exclusive development, licensing, manufacturing, and commercialization rights to Onconic’s Zastaprazan, a gastroesophageal reflux disease (GERD) treatment candidate, in Greater China, including the Chinese mainland, Hong Kong, Macau, and Taiwan.
Financial Terms of the Agreement
Livzon will pay a non-refundable upfront payment of USD 15 million and is committed to USD 112.5 million in development, licensing, and commercialization milestone payments, alongside additional royalties based on post-commercialization sales.
Profile of Zastaprazan
Zastaprazan is a potassium-competitive acid-blocking (P-CAB) class drug candidate currently replacing existing proton pump inhibitors (PPIs) in the market for peptic ulcer disease, including GERD. In Korea, Onconic initiated a Phase III clinical trial for reflux esophagitis for Zastaprazan in January last year. The drug is characterized by rapid onset, good acid inhibition effects, lasting effects, and fewer adverse reactions.
Future Development Potential
Zastaprazan has the potential to be developed for the treatment of duodenal ulcer, helicobacter pylori infection, and non-erosive gastroesophageal reflux disease in the future. This agreement positions Livzon to expand its presence in the GERD treatment market and offer innovative solutions to patients in Greater China.
Significance of the Partnership
The licensing agreement underscores Livzon Pharmaceutical’s commitment to enhancing its product portfolio and addressing unmet medical needs in the region. By partnering with Onconic Therapeutics, Livzon aims to leverage the strengths of both companies to bring effective and innovative treatments to patients.-Fineline Info & Tech
