Licensed out for Chinese market, a total of USD 39 million including the upfront payment of USD 5 million
Sales milestones and tiered-royalties on net sales to be additionally paid
JW Lifescience will manufacture and supply upon NDA approval in China
JW Holdings announced on the 26th of October that it has signed the ‘Exclusive License and Distribution Agreement’ for Winuf®, a three-chamber total parenteral nutrition (TPN), with Shandong Luoxin Pharmaceutical Group Stock Co., which is a subsidiary of Luoxin Pharmaceutical Group Stock Co., Ltd. (hereinafter referred to as “Luoxin Pharmaceutical”) in China.
Through this agreement, JW Holdings will grant Luoxin Pharmaceuticalthe exclusive right to develop and commercialize Winuf® in China (including Hong Kong and Macau).
Under the terms of this agreement, JW Holdings will sequentially receive the upfront payment of USD 5 million (approximately KRW 5.7 billion), and will also be eligible for receiving payments in line with the progress of the development and sales milestones in sum of up to USD 34 million. In addition, JW Holdings will receive tiered-royalties from Luoxin based on future product sales in China, once commercialized.
The size of supply remains undisclosed by the mutual agreement of both companies. Meanwhile, JW Life Science will be responsible for product manufacturing and supply of Winuf®.
Winuf® is a third-generation TPN that consists of 4 lipid components, such as refined fish oil (20%), refined soybean oil (30%), olive oil (25%), and MCT (25%), as well as glucose and amino acids. In particular, since it contains a higher content of refined fish oil than the existing products, it has more contents of omega 3 and omega 6 fatty acids that promote the improvement and recovery of immunity in patients.
The product was launched in 2013 in Korea and JW Pharmaceutical is responsible for its sales. Last year, the domestic sales were recorded as KRW 55.7 billion, and Winuf® has also entered the European market.
Luoxin Pharmaceutical plans to develop a new market for parenteral nutrition in China through License-in of Winuf®. According to IQVIA, the three-chamber TPN market is growing rapidly, with the average growth rate over the three years (2017~2019) of 9.1% globally and 25.5% in China.
“We are very pleased to reach agreement with JW Holdings. We hope Winuf® will enter the Chinese market and benefit patients with relevant indications as soon as possible,” said Ryan Liu, CEO of Luoxin Pharmaceutical. “In recent years, Luoxin Pharmaceutical has formed strategic partnership with many Korean enterprises to introduce excellent products and therapies into China. We will attach equal importance to independent and cooperative R&D, create pipeline that can withstand the market test, and bring more value to customers, patients and the society!”
JW Holdings is expecting to expedite the business opportunities of Winuf® in other countries as its value has been recognized in China.
“JW, which has been leading the domestic market of hospital solution, is being recognized in the global high value-added TPN market through bold investment and innovative technology development”, Sung-Kwon Han, CEO of JW Holdings, said. He also explained, “By taking this opportunity through license-out, we plan to further expand the global opportunities of Winuf®”
Meanwhile, many Korean domestic pharmaceutical companies have developed and successfully exported pharmaceuticals in the form of tablets, capsules, ampoules, and vials to advanced markets such as United States and Europe; however, JW Group is the only Korean pharmaceutical company to export the hospital solution to the global market including Europe and is also the first among the Asian pharmaceutical companies.
About JW Group
JW Group has been leading the Korean market for therapeutic drugs based on respect for life and the founding philosophy of pioneering spirit since its foundation in 1945. In 1959, the nation’s first medical hospital solution, “5% glucose”, has started its local manufacture.
JW Pharmaceutical, its flagship subsidiary, has various innovative new drug R&D pipelines, including anti-cancer drugs, while JW Life Science, a subsidiary specializing in hospital injection production, produces and supplies 8 million comprehensive nutrients annually based on the world’s largest plant dedicated to eco-friendly Non-PVC hospital injections.
JW Holdings is also directly responsible for overseas business of raw materials, drugs and medical devices in the group, in addition to managing subsidiaries, generating profits. JW Holdings is listed on the Korean exchange as ‘096760’.
About Luoxin Pharmaceutical
Luoxin Pharmaceutical Group Stock Co., Ltd. is a healthcare conglomerate corporation in China that is engaged in pharmaceutical research and development, manufacture, sales, and healthcare service. As one of the fastest growing pharmaceutical companies in China, it serves customers with high quality active pharmaceutical ingredients (APIs), finished products in various formulation forms (tablets, capsules, injectable, etc.), and healthcare service.
Now the company has been ranking top 100 of China’s Pharmaceutical Industry in terms of overall competence nationwide, and identified as one of the “Top 20 Pharmaceutical Companies with Strong R&D Pipelines” for years. The company was listed on China’s A-shares market in 2019 as ‘002793’.
About 3CB TPN (3-Chamber Total Parenteral Nutrition)
A comprehensive nutrient solution that divides a container into three chambers and can be easily mixed with three components: lipid, glucose and amino acids.
About lipid nutrient fluid trends
1st generation: Long chain triglyceride (LCT) oil-containing product (refined soy milk, etc.)
2nd generation: Medium chain triglyceride (MCT) oil-containing products (Coconut oil, olive oil, etc.)
3rd generation: Products containing refined fish oil (Fish oil)