[Edaily Reporter NA EUN-KYUNG ] LigaChem Biosciences(141080)announced on the 7th that it is ending its joint development partnership with U.S. biotech company NextCure for LNCB74, a B7-H4-targeted antibody-drug conjugate (ADC), and will transition to an independent development model.

LigaChem Biosciences has signed a transfer and succession agreement with NextCure, securing sole decision-making authority over the development, manufacturing, and commercialization of LNCB74. In addition, the company has acquired exclusive rights to implement the relevant technologies held by NextCure, as well as the rights to license these technologies to third parties (license-out). In return, Ligacem Bio will pay NextCure milestone payments at each stage of future development, approval, and commercialization, as well as royalties based on product sales.

This agreement follows NextCure’s decision to shift its business focus from anticancer drugs to autoimmune diseases as it pursues a merger with Avere Therapeutics, a developer of treatments for autoimmune and inflammatory diseases. Following the merger, the surviving entity will change its name to Avere Therapeutics and trade on the Nasdaq under the ticker symbol “AVRX,” focusing its resources on the clinical development of treatments for psoriasis and ulcerative colitis. The background for this decision is that, with the business focus shifting from anticancer drugs to autoimmune diseases, the incentive to continue developing the existing anticancer pipeline has disappeared. Consequently, the joint development agreement between the two companies has been terminated, and LigaChem Biosciences has transitioned to a structure where it will develop LNCB74 independently.

LNCB74 is an anticancer drug candidate created by applying LigaChem Biosciences’ ADC platform technology to NextCure’s B7-H4-targeting antibody. B7-H4 is an immunomodulatory protein highly expressed in various solid tumors, such as breast, ovarian, and endometrial cancers; since its expression is limited in normal tissues, it is attracting attention as a next-generation ADC target.

LNCB74 is currently undergoing a Phase 1 clinical trial in the United States for patients with advanced solid tumors. Following this agreement, LigaChem Biosciences will continue the clinical trial without interruption and is scheduled to sequentially assume the status of the U.S. Investigational New Drug (IND) applicant and take over clinical operations.

Although LigaChem Biosciences’ development costs will increase following the termination of the joint development agreement, the company expects to accelerate decision-making and conduct global technology transfer negotiations with greater flexibility, as it will now be able to independently determine its development, commercialization, and technology transfer strategies.

Park Se-jin, CEO of LigaChem Biosciences, stated, “LNCB74 is a program that has been steadily progressing since entering clinical trials.” He added, “As this agreement allows us to take the lead in determining our development and commercialization strategies, we will continue the Phase 1 clinical trial without any setbacks and pursue the optimal commercialization strategy, including global technology transfer.”