TiumBio is getting its respiratory drug NCE401 back—but it’s already moved on. On Wednesday, Italy-based Chiesi Farmaceutici scrapped its licensing deal, handing back the rights to the Korean biotech after failing to develop a viable candidate.
The move effectively ends a six-year, $75 million partnership, leaving TiumBio to double down on immunotherapy and reproductive health.
Chiesi terminates its $75M deal with TiumBio, returning rights to a stalled respiratory drug as the biotech shifts focus to cancer and reproductive health. (Credit: Getty Images)
Rather than salvage NCE401, TiumBio is pressing forward with TU2218, its TGFβ/VEGF dual inhibitor, now in phase 2 for head and neck and bile duct cancers in the U.S. and Korea.
Meanwhile, its Chinese partner Hansoh Pharma is widening the clinical scope of HS-10518 (merigolix), an oral gonadotropin-releasing hormone (GnRH) receptor antagonist, with a new green light from regulators to develop it for assisted reproductive technology (ART).
The deal’s unraveling could have rattled investors, but CEO Kim Hun-taek quickly moved to regain control. On Thursday, he announced plans to buy 900,000 shares as Korea Investment Partners, TiumBio’s second-largest shareholder, offloads its 8.16 percent holding.
The remaining 1,496,650 shares are going to new financial investors, easing an overhang risk that had weighed on the stock. “We’re taking control of the situation,” a TiumBio spokesperson said Thursday. “Kim’s buy-in strengthens the company’s footing and shows confidence in the pipeline.”
Chiesi had licensed NCE401 in December 2018 under a deal worth up to $75 million—$1 million upfront, plus milestones. But the project delivered little, with just $1.5 million paid out to date. The company had aimed to develop an inhalable treatment for idiopathic pulmonary fibrosis and other respiratory diseases but failed to create a viable derivative. With no path forward, it walked away.
TiumBio, for its part, isn’t looking back. “The returned drug isn’t a priority,” the company spokesperson said. “Advancing NCE401 would require significant resources. We’re focused on TU2218.”
Hansoh Pharma’s push into ART could also accelerate commercialization in China. Merigolix, initially positioned for endometriosis and uterine fibroids, is now being developed as a more convenient alternative to injectable GnRH treatments. ART protocols, including in vitro fertilization (IVF) and embryo cryopreservation, rely on precise hormone modulation. Merigolix is designed to suppress ovulation and prevent premature luteinizing hormone surges—key factors in improving pregnancy outcomes.
“It’s a strategic move,” Kim said. “ART has shorter treatment cycles, which means we can get through trials faster and move toward commercialization sooner.”
TiumBio and Hansoh inked a $170 million licensing deal in 2022, granting Hansoh exclusive rights to develop and commercialize merigolix in China.