Rhythm Pharmaceuticals expands LG Chem obesity drug license, total payout up to $855 million

Rhythm Pharmaceuticals and LG Chem have revised their licensing agreement for the oral obesity and hyperphagia drug bivamelagon, increasing the total scheduled payments.

The new terms raise the potential payout from $305 million to as much as $855 million, with tiered cash payments of $350 million spread over 2024‑2029 and a reduced royalty rate of 1% starting in 2029 or upon first commercial sale.

The agreement also adds a contingent $200 million payment to LG if the MC4R portfolio reaches $3 billion in sales, reflecting confidence in the drug’s market potential.

The original deal included $80 million upfront, $20 million in Rhythm stock and up to $205 million in milestones, plus low‑to‑mid‑single‑digit royalties.