ABL Bio announced on the 9th that it has terminated the technology introduction contract signed with the domestic corporations IntoCell.
The company explained the reason for the contract termination as "patent issues." A representative of ABL Bio noted, "We determined that we could no longer proceed with research and development as there is a possibility that we cannot secure a patent or may infringe on the rights of a third party that holds related patents when developing new substances using Nexatecan technology."
Previously, the company signed a technology introduction contract for the ADC platform "Nexatecan" with IntoCell in October last year. However, after discovering issues with the patent, it decided to terminate the contract. A representative of ABL Bio stated, "There were no issues in the patent analysis conducted at the time of the contract, but later we found a 'submarine patent' that had been hidden underwater," and added, "We requested a resolution from IntoCell within the deadline, but ultimately concluded that it was difficult to resolve, leading to the termination of the contract."
A submarine patent refers to a "hidden patent." It refers to a patent that is filed and then, after a third party, unaware of the existence of that technology, invests in it, the patent is obtained, and then a lawsuit is filed to receive royalties. If a company enters the market unknowingly of a submarine patent, it can be attacked in return.
ADC is a treatment technology that attaches drugs to antibodies to deliver them precisely to cancer cells. To develop ADC candidate substances, an antibody, a payload (drug), and a linker to connect the two are needed.
IntoCell, founded in 2015 by CEO Park Tae-kyo, a co-founder of LigaChem Biosciences, possesses platform technology for ADC development. In December 2023, it also entered into a joint research contract with Samsung Bioepis to develop up to five ADC candidate substances by providing linker and drug technology for ADCs.
ABL Bio explained that there is no penalty for terminating the contract and that it will not reclaim the advance payment made to IntoCell at that time. The company did not disclose the scale of the contract amount at the time of signing.
The company also stated that this contract termination does not affect the dual antibody ADC candidate substances currently under development. A representative of ABL Bio noted, "The dual antibody-based ADC pipeline, including ABL206 and ABL209, is progressing normally in research and development using the validated Synaffix platform through contracts with global pharmaceutical companies," and added, "There are no changes to the schedule for submitting two clinical trial applications (IND) aimed for this year."