LegoChem shares up over 10% on $1.25 bn ADC license deal with Amgen

[Source : LegoChem Biosciences]

Shares of South Korea’s LegoChem Biosciences, a clinical-stage antibody-drug conjugate (ADC) platform developer, rallied more than 10 percent on Friday on news that it has signed a deal to transfer its proprietary technology to U.S. Amgen for up to 1.6 trillion won ($1.25 billion).

Under the deal, Amgen will have the global development and commercialization rights to LegoChem’s ADC platform for five targets, and LegoChem is eligible to receive up to 1.6 trillion won, including royalty for technology and milestones for clinical development and commercial accomplishments plus tiered royalties after the drug makes it to market. However, LegoChem did not disclose its upfront fee.

The Korean biotech firms shares surged 10.15 percent to 41,300 won in afternoon trading on Friday.

ADCs are complex molecules composed of an antibody linked to a biologically active cytotoxic payload or drug, designed to discriminate between healthy and diseased tissue.

LegoChem has so far inked a total of 12 license deals in the ADC field, including the latest one, and the cumulative contract amount is 6.5 trillion won, the company said.