Lotte Biologics Signs MOU to Establish ADC Platform with Domestic Bio Venture

Kanaph Therapeutics and Contract Research & Joint Development

Lotte Biologics announced on the 11th that it has signed a memorandum of understanding (MOU) with the domestic bio venture company Kanaph Therapeutics for 'contract research and joint development to establish an antibody-drug conjugate (ADC) technology platform.'

Exterior view of Lotte Biologics' Syracuse plant in the United States. [Photo by Lotte Biologics]

ADC is a pharmaceutical that conjugates an antibody and a drug, connecting an antibody that binds to cancer antigens with a cytotoxic drug (payload) that can kill cancer cells via a linker. This allows the toxin to be effectively delivered only to cancer cells, earning it the nickname "cancer-targeting guided missile."

According to the agreement, the two companies plan to jointly develop a new ADC technology platform for existing linkers and payloads over the next year. Lotte Biologics aims to internalize its ADC contract development (CDO) capabilities to strengthen its order competitiveness. Kanaph Therapeutics plans to develop new ADC drugs that can overcome unmet medical needs of existing therapies based on the joint development results.

Kanaph Therapeutics is developing immuno-oncology, targeted oncology, and autoimmune disease therapeutics centered on an antibody-cytokine fusion protein platform. Additionally, it is simultaneously developing two protein-based new drugs and four synthetic new drugs, equipping itself with internal capabilities for ADC development. Kanaph Therapeutics was founded in February 2019 by CEO Byungchul Lee, who accumulated research experience at global pharmaceutical companies.

Wonjik Lee, CEO of Lotte Biologics, stated, "Our goal is to provide comprehensive ADC contract development and manufacturing (CDMO) services by combining the ADC manufacturing capabilities of the expanding Syracuse site." He added, "Furthermore, through investments and collaborations with bio ventures, we aim to continuously contribute to the positive development of the overall bio ecosystem."

Byungchul Lee, CEO of Kanaph Therapeutics, said, "Based on our extensive research experience related to linkers and payloads, we aim to discover new linker-payload combinations that overcome current technological challenges through joint development with Lotte Biologics, targeting the development of innovative therapeutics."

Earlier, Michael Hausleiden, head of Lotte Biologics' U.S. branch, told reporters at 'Bio Korea 2023' in May that the specific start date for ADC contract manufacturing (CMO) is targeted for 2025. Hausleiden stated in his presentation, "Lotte Biologics is adding capabilities related to ADC," and "We have already started related investments totaling $80 million (approximately 103.8 billion KRW)." In January, CEO Wonjik Lee announced at the JP Morgan Healthcare Conference (JPMHC) plans to build ADC production facilities at the Syracuse plant.

Meanwhile, Lotte Biologics continues to engage in open innovation with domestic bio ventures. In April, it formed a strategic business partnership with Pinobio, a company specializing in ADC platforms. As part of this open innovation, Lotte Biologics plans to provide facilities for bio venture companies in a future domestic mega-plant complex and establish a 'Bio Venture Initiative' for technology development cooperation.

This content was produced with the assistance of AI translation services.