Ono Pharmaceutical has bought a seat in a quiet corner of the congested antibody-drug conjugate (ADC) space, agreeing to pay LigaChem Biosciences up to $700 million for a potential first-in-class solid tumor candidate LCB97.
LigaChem’s ADC is designed to deliver a therapeutic payload to cells that express L1CAM. The adhesion molecule, which is also called CD171, has caught the eye of a few research groups but LCB97 has a shot at being the first L1CAM-directed ADC to enter the clinic. Bristol Myers Squibb is collaborating on a trial of a L1CAM CAR-T cell therapy, while Seattle Children's Hospital is also running a CAR-T study.
Japan’s Ono has entered the space by making an upfront payment of undisclosed size to LigaChem. The deal could be worth $700 million once milestones tied to R&D events and sales are factored in. LigaChem is also in line to receive tiered royalties on net sales.
Ono’s statement lacks a timeline for taking LCB97 into the clinic. The candidate is the result of a series of deals, which furthered development of the antibody and its conjugation to a payload to make the ADC.
The tech transfer office of German cancer research center DKFZ included (PDF) an anti-L1CAM antibody on a list of its antibodies in 2014. Scientists from Elthera and DKFZ co-authored a paper on an antibody against the receptor in 2018. LigaChem, then called LegoChemBio, acquired an unnamed antibody from Elthera in 2023. The Korean biotech later revealed it was partnered with Elthera on its L1CAM ADC.
Ono’s decision to add another deal to the chain gives the company a toehold in the ADC space. The drug developer is active in the oncology space where it is working on a slate of antibodies as well as some multi-specific molecules and cell therapies. But the company has stayed on the sidelines as its peers have bet big on ADCs.
LigaChem has provided Ono with a way to further explore the modality. In addition to picking up LCB97, Ono has formed a research collaboration with LigaChem. The partners will use LigaChem’s ADC platform to generate new candidates against targets selected by Ono. LigaChem will receive a target exclusive fee.