Germany-based Boehringer Ingelheim has signed a collaboration and license agreement with Yuhan, a South Korean pharma company, it was reported yesterday.

The contract has been signed for Yuhan's fusion protein for the treatment of Nonalcoholic Steatohepatitis (NASH) and related liver diseases. The fusion protein uses the HyFc technology of Genexine. It has been developed in-house by the South Korean pharma company.

The deal is valued at up to USD870m. Under the terms of the contract, Yuhan will be paid USD40m in upfront and near term payments by the German pharma company. Additionally, the company will be entitled to be paid up to USD830m in potential milestone payments and tiered royalties on net sales in the future.

The fusion protein is a dual agonist that integrates GLP-1 and FGF21 activity. It is likely to decrease liver cell injury and also hepatic inflammation through resolution of steatohepatitis. The partnership integrates Yuhan's expertise in FGF21 biology, obesity and NASH, with the pharmaceutical expertise and commitment of Boehringer Ingelheim to develop drugs for cardiometabolic diseases.