Smith Anderson Advises LG Chem on Multi-Million Dollar Agreement to License Global Rights to Treatment for Rare Obesity Disorders to Rhythm Pharmaceuticals

LG Chem, a global company headquartered in South Korea that specializes in life sciences as one of its core businesses, has entered into a global exclusive licensing agreement to allow Rhythm Pharmaceuticals to further develop and market a LG Chem’s small molecule, genetic obesity drug, LB54640.

As publicly reported, Rhythm, based in Boston, has agreed to pay LG Chem $40 million in cash and $20 million in Rhythm equity at closing and an additional $40 million in cash 18 months after closing for the licensed rights to LB54640. Rhythm has also agreed to pay LG Chem up to $205 million upon achieving certain regulatory and sales milestones, as well as royalties.

The Smith Anderson legal team advising LG Chem on the deal was led by partners John Therien and Lee Strasburger, with support from partners Miranda Miller, Justin Truesdale, Jordan Fieldstein and Heyward Armstrong.

About LG Chem
LG Chem is a leading global chemical company with a diversified business portfolio in the key areas of petrochemicals, advanced materials, and life sciences. The company manufactures a wide range of products from high value-added petrochemicals to renewable plastics, specializing in cutting-edge electronic and battery materials, as well as drugs and vaccines to deliver differentiated solutions for its customers. LG Chem Life Sciences develops, manufactures, and globally commercializes pharmaceutical products, with a focus on oncology, immunology, and metabolic diseases.