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“Among companies developing treatments targeting ALK7, a next-generation obesity target that selectively breaks down body fat, we are effectively the only one with an asset still available for a deal.”
Lee Dong-ki, CEO of Olix (226950.KQ), made the remarks in an interview with Seoul Economic Daily on the 12th, referring to the company’s next-generation obesity target ALK7 pipeline. “We intend to negotiate with time on our side so that its value can be properly recognized,” he said. ALK7 is a receptor that directly promotes the breakdown of fat in fat cells. Unlike existing GLP-1 class drugs that reduce appetite, ALK7 has a mechanism that targets body fat itself, making it a candidate for next-generation obesity treatment.
The competitive landscape surrounding ALK7 has recently undergone major reshaping. Arrowhead of the United States chose in-house development over partnering, while GlaxoSmithKline (GSK) completed a partnering deal in May this year by licensing in the ALK7 candidate (SA030) from Chinese biotech Sirnaomics. For a substance that had not even completed Phase 1 clinical trials, GSK signed a deal worth up to $1 billion (about 1.5 trillion won) including upfront and milestone payments
Regarding the GSK deal, Lee explained, “Rather than a starting point of interest, it is a case where big pharma’s already growing interest materialized into an actual deal.” He added, “It is a favorable situation for technology exports, with ALK7’s strategic importance reaffirmed.”
Amid this trend, Olix’s ALK7-targeting obesity treatment candidate “OLX501A” is also drawing attention. After recently securing interim data from a preclinical study in an obese primate model and confirming the development candidate, the company aims to enter clinical trials in 2027. “Demand from big pharma to secure ALK7 candidates is increasing, but supply will be limited,” Lee said. “Even though we are currently at the preclinical stage, we are already engaged in partnering discussions.”
Having secured funds through a rights offering in August last year, the company can also afford to take a relaxed stance in negotiations. Olix’s unused cash exceeded 240 billion won as of June this year. The 25 billion won borrowed from the Korea Development Bank to build a new headquarters in Pangyo, Seongnam, had been reduced to 16.9 billion won as of the end of March. “We now have the strength to choose how far we want to take this,” Lee stressed. “We will decide on technology transfer at whatever stage of preclinical or clinical development, when the best conditions are in place.”
Meanwhile, Olix is also discovering new substances that act selectively on fat cells, beyond ALK7. The company plans to release related data at its R&D Day held this month
#Olix#ALK7#ObesityDrug#Biotech#GSK#GLP1#KoreaBiotech
Original reporting by Park Ji-soo for Seoul Economic Daily
AI-translated from Korean. Quotes from foreignxact original wording
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