Massive £730m cancer drug deal for biotech firm
A BIOTECH company has signed a deal potentially worth £730m to develop a Korean pharmaceutical firm’s cancer treatment drug.
Iksuda Therapeutics, based in the Biosphere at Newcastle Helix, has signed a licence and commercialisation agreement with LegoChem Biosciences (LCB) which will see the Daejeon-based company tap into the Tyneside firm’s antibody-drug conjugate (ADC) technology.
ADCs target tumour cells and poisons them and Iksuda’s ADC programmes target tumours that currently have limited treatment options and high-relapse rates.
Under the terms of the agreement, first announced by the Kosdaq-listed firm at the end of last month, Iksuda will get exclusive rights to develop and market LCB’s cancer treatment drug in most countries, while LCB will keep the rights in China and Korea.
Documents published on the Korean listed firm’s website reveal the total contract is worth up to 1.186 trillion Korean Won, around £730m, plus royalties and profit-sharing in terms of the technology transfer.
It also includes an upfront payment of $50m, around £36.8m. The milestone payments by development stage total $950m, around £699m.
The drug is currently in phase one clinical trials in China and Iksuda is also planning a phase-one clinical trial programme in the US during the third quarter of this year. Phase two trials in HER2-positive gastric cancer patients are planned for this year too.
Iksuda – named as one of the five North East firms to watch by The Journal and BusinessLive – said the agreement with LegoChem Biosciences will allow it to further expand its clinical development pipeline. The Newcastle Helix-based business is also rapidly expanding its pre-clinical pipeline.
The deal comes seven months after Iksuda announced the completion of a $47m (around £34m) financing round.
The firm is using the money to fund human clinical trials of its lead cancer drug, IKSO3, in the first half of this year, and expand its platform technologies.
Dr Dave Simpson, chief executive of Iksuda Therapeutics, said: “This agreement further demonstrates Iksuda’s commitment to the development of differentiated ADCs that will potentially bring benefit to patients living with cancer. Importantly, it is also further recognition of the unmatched expertise of our team.”
Yong-Zu Kim, chief executive of LegoChem Biosciences, added: “Recognising Iksuda’s depth of knowledge within the field of ADCs we are pleased to once again expand our relationship and our continued efforts to develop a broad pipeline of pre-clinical and clinical opportunities.”