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Rhythm and LG Chem Amend Bivamelagon License Terms

lite News Desk 2 min read

Rhythm Pharmaceuticals and LG Chem amended their worldwide exclusive license for bivamelagon on November 2, 2026, according to Rhythm. The company said the revised agreement provides for $350 million in additional payments to LG Chem and changes royalties covering Rhythm’s MC4R portfolio.

Rhythm describes bivamelagon as a small-molecule MC4R agonist taken orally that remains investigational. Alongside bivamelagon, the portfolio covered by the royalty terms contains setmelanotide and RM-718.

According to Rhythm, the amendment sets the royalty at 1% of net sales worldwide for products across that portfolio. The starting date is January 1, 2029, unless bivamelagon’s first commercial sale occurs sooner, in which case the royalty begins earlier. This replaces rates in the low-to-mid-single digits that depended on approved indications.

Rhythm said the additional fixed payments are divided into four installments. A $70 million payment is due within 15 business days after the amendment’s November 2 effective date. Two further payments of $100 million each are scheduled for September 2027 and September 2028, with $80 million due in September 2029. Certain fixed obligations can instead be satisfied through additional royalties, but only with LG Chem’s agreement.

The company said the revised agreement also provides for a payment of as much as $200 million if the portfolio’s worldwide annual sales reach $3 billion. The earlier agreement already provided for potential milestone payments totaling up to $205 million tied to development, regulatory and commercial milestones.

The license dates to January 2024. According to Rhythm, that agreement granted it exclusive rights worldwide to develop and commercialize bivamelagon, with original terms including cash of $80 million and Rhythm shares worth $20 million.

Separately, Rhythm announced on November 2 that it had entered a five-year term-loan facility led by KKR’s HealthCare Royalty alongside Blackstone. The company said the facility offers access to up to $750 million, including a committed amount of $500 million.

Within that commitment, Rhythm said it expected to draw an initial $250 million at a November 6, 2026 closing, subject to customary closing conditions. Optional delayed draws totaling up to another $250 million are available through June 30, 2028. Access to the remaining $250 million outside the committed portion requires mutual agreement.

According to Rhythm, interest on borrowings would be calculated using the Secured Overnight Financing Rate, or SOFR, with an additional 4.60%. The facility contains no equity component, and its terms do not schedule principal amortization ahead of maturity.

* This article is based on publicly available information at the time of writing.

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