LigaChem Biosciences, Ono Pharmaceutical ink $700 mn deal

LigaChem Biosciences CI

LigaChem Biosciences, a leading South Korean company in the antibody-drug conjugate (ADC) sector, signed two significant licensing agreements with Japan‘s Ono Pharmaceutical. Announced on Thursday, one of the deals is valued at up to $700 million, marking another major achievement for the South Korean biotech firm. This follows its record-breaking $1.63 billion pharmaceutical licensing deal with Janssen in December, the largest in the country’s history in the sector.

The latest achievement further cements the Korean company’s reputation as a key player in the global ADC market, particularly in the oncology sector. ADC therapies, often referred to as “guided missile” cancer treatments, are designed to selectively target and destroy cancer cells while minimizing damage to healthy tissues.

The drug candidate at the heart of the deal is LCB97, an anti-cancer drug developed using LigaChem’s proprietary “ConjuAll ADC” technology. LCB97 targets L1CAM (L1 cell adhesion molecule), a protein known to be overexpressed in various solid tumors.

Under the agreement, Ono Pharmaceutical secured the global rights to develop and commercialize LCB97 for the treatment of solid tumors. In addition to upfront payments, LigaChem will receive royalties based on the drug’s future net sales if it successfully reaches the market. Beyond this, Ono Pharmaceutical and LigaChem Biosciences also agreed to collaborate on ADC platform technology, allowing Ono to leverage LigaChem’s ConjuAll technology to discover and develop additional ADC candidates targeting various types of cancer.

While the exact details of the joint research and platform licensing agreement remain undisclosed, LigaChem confirmed that the contract includes upfront fees, research and development milestone payments, and sales-based royalties. The Korean biotech firm noted that this level of secrecy is part of its strategic approach to future negotiations with other global pharmaceutical companies, indicating potential for similar agreements in the pipeline.

The ADC sector has gained significant attention in recent years due to its precision in delivering cancer treatments, and this partnership marks a significant development in the global oncology landscape. Ono Pharmaceutical, a Japanese firm with a market capitalization of about 10 trillion won, chose LigaChem as its first ADC-related partner, signaling confidence in the Korean company’s cutting-edge technology.