Rhythm Pharmaceuticals licenses LB54640 from LG Chem for $60M upfront plus $40M deferred

RHYTHM PHARMACEUTICALS, INC.

License deal: $40M cash + $20M stock upfront; additional $40M cash due 18 months after effective date.
Up to $205M in regulatory and sales milestones; low-to-mid single-digit royalties on MC4R portfolio starting 2029.
Rhythm assumes sponsorship of two Phase 2 studies: SIGNAL (hypothalamic obesity, ~28 patients) and ROUTE (POMC/LEPR deficiency, 5 patients).
Cash guidance updated: existing cash sufficient into H2 2025, including $80M fixed payments to LG Chem.

item 1.01 item 3.02 item 8.01

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

RHYTHM PHARMACEUTICALS, INC. entered into Share Issuance Agreement with LG Chem, Ltd. (effective 2024-01-04).

Action: entry
Agreement: equity purchase
Counterparty: LG Chem, Ltd.
Effective: 2024-01-04

Exact text from the filing

The Share Issuance Agreement contains customary representations and warranties by the Company and LGC, and the issuance of the Shares is subject to certain customary closing conditions.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

RHYTHM PHARMACEUTICALS, INC. entered into License Agreement with LG Chem, Ltd. valued at $40 million in cash and issue shares of its common stock, par value of $0.001, with an aggregate val (effective 2024-01-04).

Action: entry
Agreement: license
Counterparty: LG Chem, Ltd.
Value: $40 million in cash and issue shares of its common stock, par value of $0.001, with an aggregate val
Effective: 2024-01-04

Exact text from the filing

Under the terms of the License Agreement, the Company will obtain worldwide rights to exploit LGC’s proprietary compound LB54640 and will assume sponsorship of two ongoing LGC Phase 2 studies designed to evaluate safety, tolerability, pharmacokinetics and weight loss efficacy of LB54640.

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RHYTHM PHARMACEUTICALS, INC. filing history →

Source: SEC EDGAR

accession 0001104659-24-001139

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