LigaChem Biosciences (141080.KQ) will receive a milestone payment from Japan's Ono Pharmaceutical following the first patient dosing of LCB97, an antibody-drug conjugate (ADC) candidate it licensed out to the Japanese drugmaker.
LigaChem Biosciences said in a regulatory filing on the 9th that the milestone payment triggered by the first patient dosing of LCB97 has been confirmed. The exact amount is confidential under the contract, but it corresponds to more than 10% of the company's consolidated revenue of 141.55307 billion won last year. The payment is therefore estimated at a minimum of 14.1 billion won.
LCB97 is an ADC candidate targeting L1CAM, a cell adhesion protein expressed in various solid tumors. LigaChem Biosciences transferred the global development and commercialization rights for LCB97 to Ono Pharmaceutical in 2024. The deal is worth up to $700 million, including upfront and milestone payments, with royalties after product launch to be paid separately.
The latest payment stems from LCB97's entry into clinical development involving actual patients. Ono Pharmaceutical announced last month that it had begun enrolling patients in a Phase 1 clinical trial of LCB97. LigaChem Biosciences may receive additional milestones and royalties depending on future clinical progress, regulatory approval, and commercialization.
The company issued an invoice the same day and expects to receive the payment within 45 days. Even if the licensing agreement is terminated due to a failure to proceed with clinical trials, approval, or commercialization, LigaChem Biosciences is under no obligation to return milestone payments already received.
