Hanmi Pharmaceutical said on the 1st that Eli Lilly and Company recently paid 112.9 billion won as an upfront payment for a candidate drug for intestinal diseases. Earlier, Hanmi Pharmaceutical out-licensed sonepeglutide to Eli Lilly and Company in a deal worth about 2 trillion won.
Sonepeglutide is a candidate drug for intestinal diseases that mimics the gut hormone GLP-2. GLP-2 helps regenerate and grow the intestinal mucosa. It is currently being developed as a treatment for rare diseases such as short bowel syndrome.
Hanmi Pharmaceutical signed the deal to receive an upfront payment of 112.9 billion won ($75 million) and up to 1.8973 trillion won ($1.185 billion) depending on clinical development milestones. Royalties based on sales after product launch will be paid separately.
Sonepeglutide uses Hanmi Pharmaceutical's proprietary platform technology, LAPSCOVERY. Hanmi Pharmaceutical is currently conducting a global phase 2 clinical trial. Eli Lilly and Company will conduct additional trials. Eli Lilly and Company holds the rights to develop, manufacture, and commercialize sonepeglutide worldwide except in Korea.
A Hanmi Pharmaceutical official said, "We received a nonrefundable upfront payment from Eli Lilly and Company," adding, "This upfront payment could be reflected in second-quarter results."