An In-licensing Deal with U.S. Firm
LG Chem has started full-fledged development of cancer immunotherapy drugs, which stimulate the immune system in the body and induce activated immune cells to attack cancer cells.
LG Chem announced on Nov. 12 that it entered into collaboration with Cue Biopharma in Boston, United States, to jointly work on three novel cancer immunotherapy drug projects that are in preclinical and target discovery stages.
Cue Biopharma is a Nasdaq-listed company that concentrates on development of drugs for cancer, autoimmune and chronic infectious diseases based on innovative platform technology.
Under the partnership, the two companies will co-develop and commercialize products, with LG Chem having exclusive rights for Asia and Cue Biopharma for non-Asian countries.
LG Chem will pay up to US$400 million in equity investment, down payment, development and sales milestone payments to Cue Biopharma, separate from tiered royalties on sales of products in Asia.
LG Chem secured an option, which is valued at US$500 million, to additionally introduce one drug development project in its partner’s pipeline within two years of the agreement. LG Chem will have exclusive global commercialization rights for the drug.
This partnership was strategically made on the anticipation that Cue Biopharma's innovative technologies combined with LG Chem's development capabilities will generate synergy in the global market.
Cue Biopharma's innovative platform technology offers direct and selective control of T cells in the body. This technology is different from the conventional method of extracting T cells from a patient for activation and then injecting them back into the body.
LG Chem will be leading the research to establish a chemistry, manufacturing and controls (CMC) process based on its experience in manufacturing biopharmaceuticals, synthetic drugs, and vaccines. In addition, the company will receive royalties from the partner depending on the level of achievement in clinical sample development and commercial production.