As global pharmaceutical company Eli Lilly recently acquired a firm developing orexin receptor-based sleep disorder treatments, Korean pharmaceutical and biotech companies are also moving to secure related therapies. The market for treatments that act directly on orexin signaling, which regulates sleep and wakefulness, is expected to expand, unlike conventional symptomatic treatments.
According to industry sources on the 17th, Eli Lilly completed its acquisition of the U.K.-based Centessa Pharmaceuticals last month. The deal, including a contingent value right (CVR), is worth up to $7.8 billion (11.6072 trillion won). It marks the second-largest merger and acquisition (M&A) deal in Lilly's history, following its 2019 acquisition of cancer drug developer Loxo Oncology for $8 billion.
Centessa's core pipeline is clemidsorexton (ORX750), a sleep disorder treatment based on an orexin receptor 2 (OX2R) agonist. Unlike existing treatments that relieve symptoms such as drowsiness, clemidsorexton is a novel drug candidate that directly activates orexin signaling to approach the fundamental mechanism of the disease. It is currently undergoing Phase 2 clinical trials in patients with narcolepsy and idiopathic hypersomnia.
Beyond Centessa, global pharmaceutical companies continue to develop related new drugs. Takeda's OX2R agonist "oveporexton" is going through the U.S. Food and Drug Administration (FDA) approval process, with a decision on approval expected within the year. In Phase 3 trials, oveporexton demonstrated improvements in daily functioning, cognitive function, and sleep-related symptoms in patients with type 1 narcolepsy.
Korean companies are also pursuing the development and licensing of new drugs targeting orexin receptors. Celltrion has been jointly researching an OX2R agonist-class drug candidate with domestic biotech venture Arm Therapeutics for several years. The goal is to discover a substance that shows superior efficacy at lower concentrations than competing candidates and develop it into a best-in-class drug. The two companies filed a patent related to an OX2R agonist last year, and the candidate is still in the pre-clinical stage.
SK Chemicals also recently signed a co-marketing agreement with Eisai Korea for "Dayvigo," a dual orexin receptor antagonist (DORA). While Centessa's OX2R agonist activates orexin signaling to treat conditions such as narcolepsy, Dayvigo is an insomnia treatment that blocks orexin signaling to reduce wakefulness. Dayvigo is scheduled to launch in Korea in the second half of this year.
According to one market research firm, the global sleep disorder market is projected to grow from $30.5 billion (about 45 trillion won) in 2025 to $78.6 billion (about 117 trillion won) in 2035. As the market grows and development of new drugs that directly regulate orexin signaling becomes more active, treatment options for sleep disorder patients are expected to widen in the global market.
However, in Korea, low insurance drug pricing for sleep disorder treatments has been cited as an obstacle to market expansion. In fact, the narcolepsy treatment "Wakix" had its domestic supply halted due to low pricing. Dayvigo is also known to be highly likely to launch in Korea as a non-reimbursable drug.
