Daewoong Pharmaceutical Regaining Rights to Fexuprazan in the United States and Canada upon Termination of License Agreement with Neurogastrx USA - English

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Jun 05, 2023, 09:00 ET

SEOUL, South Korea, June 5, 2023 /PRNewswire/ -- On June 2nd, Daewoong Pharmaceutical (CEO Jeon Sengho, Lee Changjae) today announced that it and Neurogastrx have agreed to terminate the June 2021 license agreement, which granted Neurogastrx exclusive right to develop and commercialize Fexuprazan with respect to the U.S. and Canada market.

Neurogastrx has re-evaluated its development pipeline and determined that the development of Fexuprazan no longer aligns with its strategic business plan. Daewoong needs a new partner to quickly develop Fexuprazan for multiple indications simultaneously, and thereby concluded with Neurogastrx to mutually terminate the June 2021 license agreement.

Under the terms of the termination agreement, Daewoong regains all rights to the commercialization and clinical development of Fexuprazan in the U.S. and Canada. Daewoong is not obligated to return the upfront payment in the form of common stocks of Neurogastrx. Neurogastrx has transferred all information, data, and assets related exclusively to the Fexuprazan compound.

Jeon Sengho, CEO of Daewoong Pharmaceutical, said, "This termination does not affect any of Fexuprazan's business and we continue our commitment to developing Fexuprazan to provide novel treatment options for patients who suffer acid-related disorders."

Daewoong is exploring strategic options with the goal of enhancing the clinical development of Fexuprazan, including discussion with several multinational pharmaceutical companies interested in the global territory both the U.S. market and non-contracted countries outside the U.S.

SOURCE Daewoong Pharmaceutical Co., Ltd