South Korea-based pharmaceutical company Hanmi Pharm. Co. Ltd. announced on Monday that it has entered into a licence agreement for the development, manufacturing and commercialisation of its biologic drug candidate sonefpeglutide (LAPSGLP-2 analogue) with US pharmaceutical company Eli Lilly and Company (NYSE:LLY).

Sonefpeglutide is a novel drug candidate incorporating Hanmi's proprietary long-acting platform technology, LAPSCOVERY. Hanmi has previously received FDA marketing approval for a biologic incorporating its LAPSCOVERY platform and is currently conducting additional global clinical trials for five other programmes utilising the same platform.

Through this agreement, Lilly will obtain exclusive rights to develop, manufacture and commercialise sonefpeglutide worldwide, excluding Korea.

Hanmi will continue to conduct the ongoing global Phase 2 trial in short bowel syndrome (SBS) through completion while Lilly will explore additional clinical trials for sonefpeglutide based on its non-clinical and clinical data.

Hanmi will receive an upfront payment of USD75m and may receive up to an additional USD1.185bn in clinical development, regulatory approval and commercialisation milestone payments. In addition, Hanmi will be eligible to receive royalties following product launch.