Expectations High for Technology Transfer Deals
The authors are analysts of Shinhan Investment Corp. They can be reached at shawn1225@shinhan.com and sehunjang@shinhan.com, respectively. – Ed.
Positive clinical data for HER2 ADC presented at the World ADC
At the World ADC 2022 conference held on September 7 (local time), there was an announcement of the results of phase Ia clinical trial for LCB14 (FS-1502), LegoChem Biosciences’ HER2-targeting antibody-drug conjugate (ADC), to treat progressive breast cancer and the partial data of phase Ib dose expansion trial which has been underway from 1H22. The presentation was given by Iksuda Therapeutics, who has the global rights to LCB14 outside Korea and China. Further updates and full clinical data will be announced in December at the San Antonio Breast Cancer Symposium (SABCS) by Fosun Pharmaceutical, who was given the greater China rights.
The clinical data were positive in terms of both efficacy and safety. A total of 52 patients, including 11 with HER2-low breast cancer, participated in the clinical trial. The recommended phase II dose (RP2D) was 2.3mg/kg (mpk). The study of 24 patients that received 2.3mpk showed an objective response rate of 46% (11 out of 24) including one complete remission and a stable disease rate of 42% (10 out of 24). As of July 7, over 75% of the patients remained in the trial.
Most of all, it is encouraging that there was no finding of interstitial lung disease (ILD), a major side effect of Enhertu. Keratitis and anemia, which are other side effects reported from rival drugs, turned out to be of low grade. The only adverse event of Grade 3 or higher was one incidence of hypokalemia.
Global bio investments concentrate on ADC from June 2022
ADC is the most notable area in the global licensing deal market this year. From June when clinical results of Enhertu were announced at the American Society of Clinical Oncology (ASCO) meeting, about six licensing deals on ADC were sealed up to August, including those involving big pharmas like Merck (MSD) and GSK. LegoChem Biosciences is expected to benefit from the current investment trend with its competitiveness proven in platform technology.
Maintain target price on expectations for partnership expansion
We keep our target price for LegoChem Biosciences unchanged at KRW67,000. The company has successfully proven its technological prowess through the announcement of its first clinical results, marking a milestone as a competitive platform technology company. Based on the positive clinical data, it stands to secure better licensing deals in terms of quality and scale. Furthermore, expectations are still high for technology transfer deals with global big pharmas in 2H22.