Inventiva has entered into an exclusive licensing agreement with Hepalys Pharma to develop and commercialize lanifibranor for NASH treatment in Japan and South Korea, with potential milestone payments of up to $231 million.

Target Company Overview

Hepalys Pharma, Inc. is a newly established biopharmaceutical company incubated by Catalys Pacific, specializing in the development of therapeutic solutions for liver diseases, particularly non-alcoholic steatohepatitis (NASH). Inventiva, a clinical-stage biopharmaceutical firm, holds a 30% ownership stake in Hepalys Pharma, which aims to bring innovative treatments to the Asian market.

Industry Overview in Japan and South Korea

The biopharmaceutical industry in Japan and South Korea is characterized by a robust framework for innovation and development, reinforced by strong government support for healthcare advancements. Japan, recognized as one of the largest markets in Asia, has a noteworthy healthcare regulatory system that facilitates the introduction of new drugs. Both countries exhibit increasing prevalence rates of non-alcoholic fatty liver disease (NAFLD), notably with up to 2.7% of the Japanese population and around 5.2% of South Koreans diagnosed with NASH.

The symptoms related to NASH can often be severe, with a significant percentage of patients, particularly in South Korea, experiencing considerable fibrosis. The demand