ABL Bio Secures $110mn for Next-Gen ADC Development

If ABL001, a treatment for bile duct cancer, is released around 2030, ABL Bio could receive royalties amounting to $110 million. This signifies a leap toward becoming a "3.0 version" biotech company. From 2030 onwards, the company plans to engage in co-development with global big pharma companies, moving beyond simple technology transfer (L/O).

In a recent interview with Hit News, Sanghoon Lee, CEO of ABL Bio, outlined the company's ultimate goal of creating a robust cash flow. Established in February 2016, ABL Bio has spent the past seven years building its "1.0 version" for growth and is now transitioning to a "2.0 version" aimed at maintaining sustainability.

On July 2nd, the company announced a $110 million private placement to fund the development of next-generation antibody-drug conjugates (ADCs). This was followed by the completion of the private placement on July 11th, involving KDB Industrial Bank, Atinum Investment, Intervest, Hana Financial Group, and Company K Partners.

The ADC pipeline developed through this private placement includes ABL206, ABL209, and ABL210. The company aims to establish an early market presence in this field, submitting an IND for phase 1 clinical trials by the end of 2025, with the trials commencing in 2026. Hit News met with CEO Sanghoon Lee to discuss the company's vision following this significant private placement.

Since its listing in December 2018, ABL Bio has decided to issue its first private placement, aiming to develop next-generation ADCs, including bispecific antibody ADCs. CEO Sanghoon Lee explained, "Earlier this year, we considered M&A plans for companies with bispecific antibody ADCs ready for phase 1 clinical trials. Unfortunately, due to several issues, the deal fell through in April. However, we completed a $110 million private placement within three months."

He added, "Through this private placement, we are preparing INDs for three pipeline drug candidates. The company has key personnel in the ADC clinical and CMC fields, and we plan to recruit 2-3 additional C-level executives in the near future."

The company plans to recruit specialized ADC personnel for the development of the bispecific antibody ADC pipeline from its US subsidiary, established in 2022. The company aims to submit INDs for three bispecific antibody ADC candidates by 2025 and to begin phase 1 clinical trials in 2026.

In September last year, ABL Bio acquired linker-payload technology based on Exatecan, a topoisomerase 1 inhibitor, similar to the payload applied to the HER2-targeted ADC therapy Enhertu, from the Dutch ADC development company Synaffix B.V.

CEO Lee stated, "ABL Bio has independently developed ADCs by attaching a phenol-based drug, 'Duocarmycin payload,' to antibodies. We have accumulated various experiences in research and development in both bispecific antibodies and ADCs."

He continued, "We have been developing bispecific antibody ADC pipelines such as ABL206, ABL209, and ABL210 for about three years. Our goal with bispecific antibody ADCs is to enhance efficacy against solid tumor indications such as non-small cell lung cancer, ovarian cancer, triple-negative breast cancer, pancreatic cancer, and esophageal cancer."

"We aim to secure over $295 million in funds by the end of 2025. To achieve this, we need to receive milestones from our existing pipeline and proceed with technology transfers for new pipelines. Most importantly, we seek to advance to the next level by receiving $110 million in royalties from the bispecific antibody ABL001 around 2030."

According to the company, Compass Therapeutics is conducting phase 2/3 clinical trials of ABL001, developed by ABL Bio, for bile duct cancer in the United States. CEO Lee stated, "If all goes well, ABL001 is expected to be launched as a new drug within a few years. We aim for sustainable management by receiving royalties rather than merely transferring technology."

In a previous interview with Hit News in January, CEO Lee mentioned, "To maintain sustainability, securing substantial cash flow is crucial. Examining successful cases like Amgen, Genentech, and Regeneron, the key to sustainability lies in co-developing with big pharma or licensing candidates that receive new drug approvals from regulatory agencies, thus bringing in royalties."

This year, ABL Bio announced interim phase 1 data for ABL503 and ABL202. According to the company, ABL503 is a substance that can be administered in combination, showing one complete response (CR) and six partial responses (PR) in phase 1 trials. Additionally, ABL202, co-developed with Ligachem Biosciences, targets ROR1 as an ADC aiming to be best-in-class, demonstrating efficacy in both hematologic and solid tumors.

Lastly, CEO Lee stated, "This year, we have engaged in term sheet-level discussions with global big pharma. We expect at least one technology transfer within the year. We will strive to grow into a '3.0 version' biotech company, moving closer to our goal of co-developing with global big pharma."