ABION logo. /Courtesy of ABION

The cancer drug development corporation ABION is transferring technology for its antibody drug candidate that has completed preclinical trials for $1.315 billion (1.8 trillion won).

ABION announced on the 24th that it has signed a total 1.8 trillion won joint development and technology transfer contract for five cancer-targeted proteins using the solid tumor antibody treatment candidate 'ABN501'.

ABN501 is an antibody treatment targeting the protein claudin 3 (CLDN3) in various solid tumors, including small cell lung cancer (SCLC), breast cancer, and ovarian cancer. Claudin 3 is a protein that appears frequently on the surface of cancer cells. It selectively attacks cancer cells without touching normal cells by disrupting the structures (tight junctions) that cause cancer cells to stick together.

ABION is developing ABN501 as the world's first claudin 3-targeted substance, and it reports that it can be utilized in various modalities (treatment approaches), including antibody-drug conjugates (ADCs) and bispecific antibodies.

This contract was made just two months after the completion of preclinical trials. The company finished the preclinical trials for ABN501 in April. Previously, in April, the company signed a term sheet for a preliminary agreement for technology transfer related to ABN501 with a U.S. antibody-drug conjugate (ADC) corporation. As it was expected that the final contract would exceed $800 million (1.2 trillion won), the industry anticipates that this company would be the contracting party.

Through this contract, ABION will receive milestone payments of $58 million per targeted protein, totaling $290 million (396.5 billion won). The technology fee received when the product is commercialized will amount to $200 million per unit, reaching a total of $1 billion (1.367 trillion won).

A company official stated, "If they develop an antibody treatment targeting CLDN3 and four other target proteins, the contracting party will have priority rights for the respective substances," adding, "For the other three proteins targeted by ABN501 or substances that target them simultaneously, the contracting party will have preferential negotiation rights for those substances, potentially increasing the total contract amount or leading to exclusive negotiations."