Company acquires cenobamate license, then out-licenses to Australian firm Arrotex in novel 'stepping-stone' commercialization model
South Korea's pharmaceutical industry has seen a new commercial model take shape: a domestic company acquires the rights to an innovative drug developed by another firm, then re-exports those rights to strategically selected overseas markets. The approach — described as a "stepping-stone" global licensing model — combines international intermediary trade with finished-product manufacturing, reducing in-house development risk while generating revenue through a diversified supply structure.
Dong-A ST announced Thursday that it has signed a license-out agreement with Australian pharmaceutical company Arrotex, granting the firm exclusive rights to develop and commercialize the epilepsy treatment cenobamate — sold under the brand name Xcopri — in Australia and New Zealand.
The deal departs from the conventional "develop in-house, then export" formula. Dong-A ST acquired the rights to a drug already proven by a major domestic biotech and used its global network to re-export those rights abroad, marking a new commercial milestone for the industry.
In 2024, Dong-A ST signed a license-in agreement with original developer SK Biopharm, covering cenobamate rights across 30 countries — including South Korea, countries in East and Southeast Asia, Russia, Australia, New Zealand and Turkey. The company then focused its regulatory capabilities on securing domestic approval, which the Ministry of Food and Drug Safety granted last November. It is currently pursuing national health insurance reimbursement listing.
The Australia deal, reached within roughly two years of the original 2024 license acquisition, gives Dong-A ST its first re-export result and secures a distribution hub in the Oceania region. Under the agreement, Dong-A ST transfers to Arrotex the exclusive rights to develop and commercially sell cenobamate in Australia and New Zealand.
Arrotex, one of Australia's top local prescription drug companies, will handle regulatory approval and marketing in both markets. Dong-A ST will manufacture and supply the finished product using its domestic production infrastructure, generating revenue through a diversified supply arrangement.
Cenobamate is a dual-mechanism drug that selectively inhibits sodium channels involved in excitatory neuronal signaling while enhancing the function of GABA-A receptors, which mediate inhibitory signaling. In a global pivotal Phase 3 trial in adults with partial-onset seizures, the drug demonstrated a statistically significant reduction in seizure frequency and a notably high rate of complete seizure freedom, establishing its clinical profile in the global market.
"This agreement is our first global business model in which we have taken an innovative drug acquired through external strategic licensing and re-exported it to overseas markets by combining it with our own global network," Dong-A ST President and CEO Jung Jae-hoon said. "Going forward, we will continue to expand our international footprint and strengthen our fundamental competitiveness in the global market through diverse partnerships that organically connect the strengths of developers and distributors."
silverpaper@heraldcorp.com
