LG Chem, Ltd., South Korea's leading chemical company, said Friday it has signed a deal to sell the global licensing rights for an anti-obesity drug candidate named LB54640 to a U.S. pharmaceutical firm for up to US$305 million. Under the deal with Rhythm Pharmaceuticals, Inc., LG Chem will initially receive $100 million and later up to $205 million depending on certain milestones in the process of the drug's development and commercialization, the company said in a statement. In addition, LG Chem will receive royalties depending on the product sales from Rhythm Pharmaceuticals each year, it said. The drug, an orally administered MC4R molecule, is currently in Phase 2 clinical trials. In the Phase 1 testing, LB54640 demonstrated dose-dependent weight reduction. MC4R stands for melanocortin-4 receptor, which controls one's appetite. Under the terms of the agreement, Rhythm will assume the sponsorship of two Phase 2 studies to evaluate the drug for weight loss, the statement said. Source: Yonhap News Ag ency