Rhythm Pharma To Acquire Rights To Oral MC4R Agonist LB54640 From LG Chem

(RTTNews) - Rhythm Pharmaceuticals, Inc. (RYTM) Thursday announced a global licensing agreement with LG Chem, Ltd. for an investigational oral small molecule melanocortin-4 receptor agonist LB54640.

Under the terms of the agreement, Rhythm will pay LG Chem $40 million in cash and $20 million in equity at closing and an additional $40 million in cash 18 months after closing. Rhythm has agreed to pay LG Chem up to $205 million upon achieving certain regulatory and sales milestones, as well as royalties.

LB54640 is now in Phase 2 clinical trials and in Phase 1 trial it demonstrated dose-dependent weight reduction in healthy overweight adults. It has received orphan drug designation from the FDA for leptin receptor deficiency and proopiomelanocortin.

David Meeker, CEO of Rhythm Pharmaceuticals said, "We are excited to build upon the strong chemistry and early translational work performed by LG Chem... The development of an effective oral therapy for treating MC4R pathway diseases has been a major goal for the industry and the early data from LG Chem suggest they have identified a specific therapy for the MC4R without hyperpigmentation or cardiovascular side effects."

Under the terms of the agreement, Rhythm will assume sponsorship of two Phase 2 studies designed to evaluate weight loss efficacy, safety, tolerability and pharmacokinetics of LB54640.

The SIGNAL trial is a randomized, placebo-controlled, double-blind study designed to enroll and evaluate approximately 28 patients with acquired hypothalamic obesity.