Samsung Biologics Co., the world’s largest contract drugmaker, said on Thursday it has signed an initial agreement with LigaChem Biosciences Inc., a South Korean biotech startup, to jointly develop and produce antibody-drug conjugate (ADC) products.
Analysts said the collaboration is a “win-win,” with Samsung expanding its contract development and manufacturing organization (CDMO) portfolio, and LigaChem diversifying its production lines.
The two companies plan to carry out more than three projects this year focused on ADC therapeutic development and production, according to Samsung Biologics, the biotechnology unit of Korea’s top conglomerate Samsung Group.
(Graphics by Dongbeom Yun) ADC therapy has emerged as a promising cancer treatment despite its high technological barriers. Once they are successfully developed, ADC drugs have shown excellent clinical efficacy against various cancers such as breast cancer and gastric cancer as well as urothelial carcinoma.
ADCs are called biological missiles, consisting of antibodies, payloads and linkers. The antibody guides the payload, or small molecule drugs that act as a warhead, and the linker connects the antibody and the payload.
The global ADC therapy market is forecast to expand from $7.7 billion in 2023 to $38.7 billion by 2029 at an average annual growth rate of 23.7%, according to global bio data compiled by the Korea Drug Development Fund.
Samsung Biologics CEO John Rim CLOSER TIES BETWEEN SAMSUNG, LIGACHEM BIO
The memorandum of understanding on their ADC collaboration comes after Samsung last year signed a contract development (CDO) agreement and a material transfer agreement (MTA) with LigaChem, formerly known as LegoChem Biosciences.
While last year’s agreements were on ADC development, the latest deal focuses on production, the companies said.
Previously, LigaChem mostly produced biopharmaceutical materials through overseas CDMO companies. Through its latest deal with Samsung, the biotech startup is expected to expand its production using domestic facilities, industry officials said.
“Through aggressive R&D investment, we aim to build more than 15 clinical pipelines within the next five years,” said LigaChem Chief Executive Kim Yong-zu. “We will closely work with Samsung to develop new drugs.”
Samsung Biologics' booth at the BIO International Convention 2024 held in San Diego (Courtesy of Yonhap) SAMSUNG’S ADC PROJECTS
Last year, Samsung Biologics completed a dedicated ADC production plant in Songdo, Incheon – a four-story building with a 500-liter conjugation reactor and one purification line.
“We are happy to work with LigaChem to provide high-quality ADC therapeutics to patients,” said John Rim, chief executive of Samsung Biologics.
Samsung Biologics is negotiating ADC contracts with several domestic and international clients in areas such as CDO, conjugation CMO and finished dosage forms, dubbed DPs.
CEO Rim is expected to provide details on these contracts during the 2025 JP Morgan Healthcare Conference, the world's largest pharmaceutical and biotech investment event, held in San Francisco on Jan. 13.
Write to Jeong-Min Nam at peux@hankyung.com In-Soo Nam edited this article.
