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CJ HealthCare made a splendid achievement of new treatment for gastroesophageal reflux disease 2017.07.12


- Conclusion of a license-out contract for development and commercialization of CJ-12420 with Luoxin ,China

- The largest scale for single item in Korea-China pharmaceutical trade history.

Total technical fee of $ 18.5 million, two-digit royalty after launch

- CJ-12420 established a foothold as Global blockbuster new drug launches with 3 trillion won entry into Chinese anti-ulcer drug market

CJ HealthCare(CEO Seok-Hee Kang) announced that it has concluded a technology export contract for the development and commercialization of CJ-12420, a new treatment for gastroesophageal reflux disease, with China's leading digestive pharmaceutical company in Shanghai, China recently.


The contract is expected to generate revenue of more than US $ 97.19 million (KRW103.1 billion) as the largest single license-out contract for single item in the history of Korea-China trade in the domestic pharmaceutical industry.

CJ HealthCare will receive double-digit royalties after new drug launches in addition to $ 18.5 million (about 20. 3 billion won) of step-by-step technical fee(milestone) for clinical trials, licensing and commercialization.


The Chinese market for anti-ulcer which CJ-12420 will enter is a huge market of about 3 trillion won, showing a rapid growth of 25% over the past five years. With this contract, CJ HealthCare will make a full-scale entrance to the Chinese market for anti-ulcer drugs, which is 10 times more than the domestic market of 300 billion won.


CJ HealthCare will export CJ-12420 finished drugs to Asia including Vietnam after 2018, following the commercialization of CJ-12420's technology export contract with China. If the new drug is launched and its sales are full-fledged, it is expected to generate annual sales of more than 300 billion won in Asia, including Korea and China.


Luoxin will acquire exclusive rights to develop, license, produce CJ-12420 and also will include the commercialization after its launch in China through this agreement


CJ-12420, a new treatment for gastroesophageal reflux disease, was introduced and developed by CJ HealthCare in 2010 as an initial ingredient from Raqualia, a Japanese R & D venture company. In 2014, CJ-12420 successfully completed phase 2 clinical trials in Korea and currently under phase 3 clinical trials. It aims to launch in 2018 in Korea.



CJ-12420 is the Best in Class new drug. According to clinical trial results up to now, it showed excellent safety as well as superior gastric acid secretion inhibition effect, such as fast acting time and long lasting effect, compared with PPI type drug, which is a typical gastroesophageal disease treatment drug.


We started development of CJ-12420 with the aim of entering global market from the beginning of development.

Usually existing domestic drugs have been promoted for global contracts since their launch in Korea. However, CJ-12420 is expected to take the lead in the global market competition by signing a contract with Luoxin in the course of clinical trials and narrowing the gap between domestic launch (2018) and global launch (2021) as much as possible.


The Chinese pharmaceutical market is growing highly at more than double digits each year, becoming the second largest market after the United States.


Luoxin, which has signed a licensing agreement with CJ HealthCare, was established in 1988 and it is a listed company in China. Its annual turnover is 1 trillion won. Luoxin is a midsize pharmaceutical company with about 5,000 employees, including more than 3,000 MRs and 300 R & D personnel.


Luoxin, a digestive drug specialist, is the fourth-largest in its turnover in the field of digestive drugs in China. The company is further brightening the possibility of success for commercialization of CJ- 12420 in China.


CJ HealthCare CEO Seok-Hee Kang said, "Through the contract to export CJ-12420 technology to Luoxin in China, we have been able to confirm the possibility of being a global blockbuster drug." He also said, “We hope that the future R & D cooperation with Luoxin will provide new treatment opportunities for patients suffering from related diseases.”


Meanwhile, CJ-12420 was selected as a global new drug development project by KOREA DRUG DEVELOPMENT FUND(CEO Sang - Aun Joo) last year and received support for non-clinical and differential clinical trials necessary for global market entry.