LG CHEM said on the 5th that its U.S. subsidiary Aveo will introduce a new drug substance to develop a new kidney cancer treatment. It is a substance that strengthens the function of blocking the pathways that supply nutrients to cancer cells.
Aveo recently signed a contract with HiberCell for global exclusive development and an option exercise right for the new drug substance "HC-5404." HiberCell is a corporations that develops anticancer drugs that prevent cancer recurrence and metastasis. The company sees efficacy when HC-5404 is used in combination with Fotivda (anti-angiogenic agent), a kidney cancer treatment already sold in the United States.
LG CHEM will directly conduct phase 1b clinical trials of the new drug substance. In phase 2, it will decide whether to enter into an option contract to exclusively license the new drug substance. If LG CHEM exercises the option, it will pay milestones (technology fees according to development stages) and royalties (a certain portion of sales revenue) in stages.
The U.S. kidney cancer drug market is around 10 trillion won. Son Ji-woong, head of the life sciences division at LG CHEM, said, "We will provide effective treatment to improve the quality of life of cancer patients."