[THE INVESTOR] LG Chem said on Nov. 12 that it will expand its drug portfolio to immuno oncology by forging a partnership with US biotech Cue Biopharma.

With the exclusive license deal, LG Chem will co-develop CUE Biopharma’s three T cell-based immunotherapy candidates in preclinical and discovery stages that are engineered to selectively modulate the human immune system to treat cancer.

The Korean firm will retain rights to develop and commercialize the potential therapies in Asia while the Boston-based company will hold rights in global markets outside Asia.

Under the terms of agreement, LG Chem will pay up to US$400 million as upfront payment, equity investment as well as potential development and commercial milestone payments. It will also pay the US firm royalties on future net sales in Asia after commercialization. LG Chem will also retain an option to elect one additional candidate within two years of the agreement for a worldwide license.

“By combining Cue Biopharma’s pioneering approach to selectively modulating disease-associated T cells with our biologics capabilities in development and manufacturing, we aim to accelerate bringing this novel therapy to a greater number of cancer patients,” said Son Jee-woong, LG Chem’s life science business head. 

According to Cue Biopharma, its drugs are delivered in vivo, unlike other T cell therapeutics that require a patient’s T cells to be extracted, then stimulated and expanded outside the body and reinfused in an activated state. 

The license deal is expected to give a much-needed boost to the Korean firm’s dwindling pipeline, which has been relying on its existing products like diabetes treatment Zemiglo and hyaluronic acid-based dermal filler Yvoire.

With aims to nurture biotechnology as its new growth engine, LG Life Science was merged with its bigger sister firm LG Chem in January 2017, but the biopharma division accounts for just 2 percent of total sales.

By Park Han-na (hnpark@heraldcorp.com)