Sam Chun Dang Pharm said on the 15th it plans to directly acquire the patent rights to its core platform technology, "S-PASS."
The company said it signed a patent transfer contract related to S-PASS the previous day and plans to complete it within a few days after administrative procedures.
It is seen as a move to resolve controversy over the company's technological verification that had been raised in some corners of the market and to restore investor confidence.
Sam Chun Dang Pharm has presented a goal of avoiding patents on Novo Nordisk's glucagon-like peptide (GLP)-1 class obesity drug to develop an oral generic and enter the global market. S-PASS is a technology applied to develop the diabetes and obesity treatment ingredients semaglutide and insulin into oral medications.
But recently, controversy has erupted over verification of the technology and a block deal plan by the largest shareholder. In particular, after a media outlet reported that "the patent for S-PASS was confirmed to have been filed in June 2024 by the Taiwanese company Summit Biotech, and it is unusual for an overseas company with no equity ties to hold the patent," the stock price swung.
The company's position is that it was for strategic reasons and there is no issue. A company official said, "We have crafted a patent strategy to avoid checks by global pharmaceutical companies, but to clear doubts about our technology and to reveal the truth, we decided on the transfer and acquisition of the patent rights."
According to Sam Chun Dang Pharm, the company signed a comprehensive research and development service contract with the Taiwanese firm Summit Biotech in 2018 and, to avoid checks from global original pharmaceutical companies, filed for the patent under that company's name. Sam Chun Dang Pharm bore the entire research and development expense, and under the contract all rights, including intellectual property, were vested in Sam Chun Dang Pharm.
Sam Chun Dang Pharm plans to receive a transfer of the patent rights registered under Summit Biotech's name and to change the applicant of the ongoing international patent application under the Patent Cooperation Treaty (PCT) to Sam Chun Dang Pharm. The company said it has already filed an application to change the PCT applicant with the China National Intellectual Property Administration (CNIPA). It explained that only related administrative procedures remain at this stage.
A company official said, "With recent media reports revealing the strategically concealed applicant, there is no longer any reason to put forward the Taiwanese company as the applicant."
Chief Executive Jeon In-seok of Sam Chun Dang Pharm at a press briefing on the 6th disclosed documents submitted to the U.S. Food and Drug Administration (FDA) and emphasized that the technology is a patent held by the company.
Sam Chun Dang Pharm added, "With this measure, much of the controversy over technological capabilities is expected to be resolved, and as the patent rights relationships become clearer, it will likely help with responses to the global market going forward," while also noting, "There are concerns that checks by global pharmaceutical companies could intensify as we come to hold the patent directly."