[Edaily Reporter Lim Jeong-yo] Kanap Therapeutics, a newcomer that listed on KOSDAQ in March of this year, possesses the capability to independently develop all components of antibody-drug conjugates. Kanap Therapeutics is attracting attention for its technological expertise across a wide range of modalities—including small-molecule compounds, linkers, antibodies, and bispecific antibodies—by identifying targets and mechanisms based on human genomic data.

Many Projects Expected to Bear Fruit This Year

What sets Canap Therapeutics apart from other drug developers is its practice of securing partners from the very early stages of R&D. The company offsets the massive costs of new drug R&D through technology transfers or 50-50 joint development agreements. The company’s partners are also well-established firms. To date, Canap Therapeutics has partnered with companies that have a proven track record in new drug development and sufficient financial resources, including #Oscotec, #Dong-A ST, Lotte Biologics, #Yuhan Corporation, and GC#Green Cross.

Kanap Therapeutics’ partners consist of: △OscoTech (KNP-502, small molecule) △Dong-A ST (KNP-101, bispecific antibody) △Lotte Biologics(next-generation ADC platform), Yuhan Corporation (KNP-504, small molecule), and Green Cross (KNP-701, bispecific antibody ADC).

Kanap Therapeutics has completed technology transfers to Oskotec and Yuhan Corporation. Canap Therapeutics is currently engaged in joint development with Dong-A ST and Green Cross. Under the agreement, Canap Therapeutics will receive a share of the revenue if Oskotec and Yuhan Corporation subsequently transfer the technology to global companies, while it will work with Dong-A ST and Green Cross to facilitate technology transfers. Canap Therapeutics is also transferring ADC production technology to Lotte Biologics’ contract development and manufacturing organization (CDMO) facility in the United States.

With Oskotec, the upfront payment was 2 billion won, though the total deal size was not disclosed. With Dong-A ST, the upfront payment was 5 billion won and the total deal size was 203 billion won; with Yuhan Corporation, the upfront payment was 6 billion won and the total deal size was 208 billion won; and with Lotte Biologics and Green Cross, both the upfront payments and total deal sizes were kept confidential. Although specific details were not disclosed, the cumulative technology transfer amount totals 774.8 billion won, and the cumulative contract value amounts to 15.9 billion won.

Canap Therapeutics has established a vision to advance at least one pipeline candidate into clinical trials and complete at least one technology transfer annually, including existing agreements. This vision also encompasses the new drug candidates KNP-503 and KNP-301, for which no contracts have yet been signed.

KNP-503 is a small-molecule SHP2 inhibitor targeting solid tumors such as non-small cell lung cancer, breast cancer, head and neck cancer, prostate cancer, and gastric cancer. Its key competitive advantage is that it is a KRAS-targeted anticancer drug designed to treat brain metastases, thanks to its high blood-brain barrier (BBB) permeability.

KNP-301 is a bispecific antibody that simultaneously targets C3b and vascular endothelial growth factor (VEGF), addressing both wet age-related macular degeneration and geographic atrophy. It is regarded as a next-generation treatment capable of overcoming the limitations of the blockbuster drug Eylea. In particular, existing treatments require monthly injections into the eye. However, KNP-301 only needs to be administered once every three months, offering the advantage of increased patient convenience.

Lee Byung-chul, CEO of Kanap Therapeutics, stated, "We are actively discussing technology transfers for KNP-301 and KNP-503," adding "In particular, KNP-301, which targets ophthalmic diseases, is a bispecific antibody therapy that maximizes patient convenience with a once-every-three-month dosing schedule. It is attracting attention in the global market due to its distinctiveness in combining complement (C3b) inhibition with existing vascular endothelial growth factor (VEGF) inhibition."

He continued, “While I cannot specify an exact timeline for technology transfer,” he added, “we expect KNP-301 to be commercialized globally next year. We believe commercialization could even be possible as early as this year.”

Break-even point expected in 2028

Kanap Therapeutics raised a total of 40 billion won through its KOSDAQ listing last March. Combined with approximately 9.3 billion won in unused funds reported at the end of last year, the company has secured about 50 billion won in cash to fuel its R&D efforts. Considering that the company spends roughly 5.5 billion won annually on R&D, Kanap Therapeutics’ current cash reserves are expected to provide sufficient funding for a considerable period.

In addition, further milestone payments are expected from the five previous domestic technology transfer and joint development agreements. In the case of KNP-502, which is being developed by Oskotec, the first patient dosing began at the end of last year, and the company has received a development milestone payment.

KNP-502 is a small-molecule compound that dual-inhibits EP2 and EP4. Its key features include overcoming resistance to existing anticancer drugs and suppressing the formation of an immunosuppressive tumor microenvironment. Last year, Ono Pharmaceutical of Japan announced positive results for its EP4 single inhibitor, and since KNP-502 also inhibits EP2, it is expected to demonstrate even more superior results.

Kanap Therapeutics is also expected to receive an additional milestone payment when Yuhan Corporation submits the Investigational New Drug (IND) application for KNP-504 this year. This payment will be split 50-50 with co-developer Cyrus Therapeutics. KNP-504 is an SOS1 inhibitor targeting KRAS and is administered in combination with existing drugs to overcome resistance to current treatments.

CEO Lee stated, “We expect to reach the break-even point (BEP) by 2028,” adding, “Based on our current business plan, we do not believe additional fundraising will be necessary.”