JW Pharmaceutical (001060.KS) shares are rising following the announcement of an exclusive domestic licensing agreement for an obesity drug candidate.
According to Korea Exchange, JW Pharmaceutical stock was trading at 31,300 won as of 10:45 a.m. on January 9, up 7.19% from the previous day. The stock price gain is attributed to the news that the company will acquire domestic development, approval, and commercialization rights for "Bofanglutide," a GLP-1 receptor agonist, from China-based Gan & Lee Pharmaceuticals.
This agreement is significant as it expands JW Pharmaceutical's in-licensing-focused R&D strategy into the metabolic disease sector centered on diabetes and obesity. JW Pharmaceutical has built a business model of introducing promising overseas drugs and bringing them to market through domestic clinical trials and regulatory approval. Representative examples include the hyperlipidemia treatment Livalo, rheumatoid arthritis treatment Actemra, and hemophilia treatment Hemlibra.
Bofanglutide is being developed as a GLP-1 receptor agonist administered via subcutaneous injection once every two weeks. The drug works by acting on GLP-1 receptors in the pancreas to promote insulin secretion and regulate blood sugar, while also delaying gastric emptying of food to prolong feelings of fullness. Through this mechanism, it induces appetite suppression and weight loss, targeting indications including diabetes, obesity, sleep apnea, and metabolic dysfunction-associated steatohepatitis (MASH).
Bofanglutide, currently in Phase 3 clinical trials in China, is demonstrating superior convenience and efficacy compared to existing treatments. In Phase 2b clinical trial results for obesity indication, biweekly administration over 30 weeks showed an average weight reduction of 17.29%. Notably, compared to clinical data from existing once-weekly products, the drug showed excellent weight loss and blood sugar reduction effects within a relatively shorter dosing period, demonstrating its potential as a next-generation obesity treatment.
JW Pharmaceutical plans to simultaneously pursue domestic Phase 3 clinical trials for Bofanglutide's obesity and type 2 diabetes indications in the second half of this year. The company expects Bofanglutide to gain a competitive advantage through dosing convenience in the current GLP-1 market, where once-weekly administration is mainstream.
"Through this agreement, we have expanded our portfolio in the rapidly growing metabolic disease sector centered on diabetes and obesity," a company official said. "Based on JW's proven development and regulatory capabilities, we will successfully pursue domestic commercialization of Bofanglutide and provide patients with innovative treatment options."
