Press Release

Daewoong Pharmaceutical’s press release

Daewoong Pharmaceutical Signs Agreement to Export Fexuprazan, A New Drug for Gastroesophageal Reflux Disease, to China

Daewoong Pharmaceutical Signs Agreement to Export Fexuprazan, A New Drug for Gastroesophageal Reflux Disease, to China

- Signed an agreement with Shanghai Haini, a subsidiary of China’s largest pharmaceutical company Yangtze River Pharmaceutical Group, for KRW 380 billion
- Fexuprazan will reorganize the Chinese gastric acid secretion inhibitor market worth KRW 3.5 trillion with its technological superiority

Daewoong Pharmaceutical’s Fexuprazan, a new drug for gastroesophageal reflux disease, will be exported through the largest pharmaceutical company in China.

Daewoong Pharmaceutical (Daewoong) (CEO Sengho Jeon) announced on March 18 that it has signed a licensing and supply agreement for Fexuprazan with Shanghai Haini, a subsidiary of Yangtze River Pharmaceutical Group (YRPG). The agreement is worth $3.24 billion, including $18 million in technical fees comprising $6 million in upfront fees and $12 million in fees by milestone.

Under this agreement, Shanghai Haini (CEO Tan Pengfei) will clinically develop Fexuprazan and obtain marketing authorization, and then YRPG will be responsible for distributing the drug. YRPG is one of the largest pharmaceutical companies in China and has ranked first on the top 100 Chinese pharmaceuticals chart for many years. It also ranks first in local revenue according to data compiled by IQVIA in 2019. In addition, as it is experienced in authorization and drug discovery and has massive distribution clout in the Chinese market, Fexuprazan is expected to grow explosively in China.

The novel gastroesophageal reflux disease drug Fexuprazan developed by Daewoong is a potassium-competitive acid blocker (P-CAB), which reversibly blocks the proton pump that secretes gastric acids from the stomach wall. The best-selling drug in the $3 billion Chinese gastric acid secretion inhibitor market is Omeprazole, a proton-pump inhibitor (PPI), with $600 million in revenue. It was demonstrated in a clinical trial that Fexuprazan improved symptoms faster and remained effective longer than Omeprazole.

Fexuprazan improved heartburn from the early days of administration regardless of day or night and cough, one of the atypical symptoms of gastroesophageal reflux disease. When administered to patients with severe symptoms, it improved heartburn in patients three times more than those treated by Esomeprazole.

Hyunjin Park, head of Daewoong’s Global Business Division, said, “This agreement is a testament that the largest pharmaceutical company in the world’s second largest Chinese market recognizes the product value of Fexuprazan. It is an achievement following agreements in Mexico and Brazil last year. Building on this large-scale agreement, we will expand our market across the world, including the US, Europe and the Middle East.”

CEO Tan Pengfei at Shanghai Haini said, “Fexuprazan is a new drug for gastroesophageal reflux disease with great potential. We take pride in supplying this important first-in-class drug with Daewoong to benefit many Chinese patients. YRPG will do its best to promote Fexuprazan as one of the best gastroesophageal reflux disease drugs in China”

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*About Daewoong Pharmaceutical
Daewoong is a Global Healthcare Group located in Seoul, South Korea. As a top 5 pharmaceutical company in South Korea with the largest number of foreign branch offices, Daewoong Group has been expanding its market towards Indonesia, United States, Vietnam, China, Thailand, Philippines, and Japan.

Since its founding in 1945, Daewoong’s mission has been to provide total solutions (medicine and services) that contribute to improving the quality of life in the most valuable way.

In 2012, Daewoong Pharmaceutical was the first Korean pharmaceutical company to be selected as part of global company fostering project ‘World Class 300’ and an innovative pharmaceutical company. In February 2019, Daewoong Pharmaceutical’s botulinum toxin obtained approval from the U.S. FDA and entered the U.S, the world's largest botulinum toxin market, in May.