LG Chem agreed to develop an early-stage cancer drug from U.S. biotech Hybar-Cell, betting the experimental compound can enhance sales of its kidney cancer treatment that has so far disappointed investors.
The South Korean chemical giant’s AVEO Oncology unit will conduct clinical trials combining HC-5404—a novel stress-response inhibitor—with Fotivda, its approved kidney cancer drug that generated roughly $200 million in annual revenue, according to a statement Tuesday. Financial terms weren’t disclosed beyond staged milestone payments and future royalties.
The licensing deal reflects LG Chem’s need to extract more value from AVEO, which it acquired for $566 million in 2022. Fotivda sales have fallen short of initial projections, and a combination trial with Bristol Myers Squibb’s Opdivo failed earlier this year to show improved outcomes.
HC-5404 targets PERK, a protein that helps cancer cells survive harsh conditions like oxygen deprivation. Laboratory studies suggested the compound could make tumors more vulnerable to blood-vessel-blocking drugs like Fotivda, though human efficacy data remains limited. The experimental treatment completed Phase 1 testing last year.
LG Chem will conduct the next trial phase and then decide whether to exercise an option for global licensing rights. The company aims to boost its life sciences division to 2 trillion won ($1.4 billion) in sales by 2027, up from just over 1 trillion won last year.
