Chong Kun Dang Pharmaceuticals has made its largest external investment to date, acquiring a 7.3% stake in antibody drug developer AbClon through a strategic partnership announced on May 12. The deal, valued at over ₩10 billion (approximately $7.5 million), was finalized at Chong Kun Dang's headquarters in Seoul on May 9.
Under the agreement, Chong Kun Dang will acquire 1.4 million shares of AbClon's registered common stock through a new share issuance. The investment grants Chong Kun Dang priority rights for domestic commercialization of AT101 (Nespacel), AbClon's chimeric antigen receptor T-cell (CAR-T) therapy for blood cancers, which is currently advancing through clinical development.
CAR-T Therapy Development and Commercialization Plans
AT101 is currently undergoing Phase 2 clinical trials, with AbClon aiming to apply for fast-track approval later this year. The therapy represents a significant advancement in personalized cancer treatment, utilizing a process where T cells are extracted from patients, genetically modified outside the body to enhance their cancer-fighting capabilities, and then reinfused.
When development is completed, Chong Kun Dang plans to leverage this partnership to establish a strong presence in the growing CAR-T treatment market in Korea. This move aligns with the company's strategy to expand its portfolio of innovative biopharmaceuticals.
Expanded Collaboration Beyond Initial Product
The strategic alliance extends beyond AT101 to include joint development of multiple immuno-oncology programs. The companies will collaborate on therapies targeting both blood cancers and solid tumors, including:
- HER2-targeted CAR-T therapy 'AT501'
- Treatments targeting PSMA (prostate-specific membrane antigen)
- CD30 (protein) targeted therapies
- 4-1BB pathway modulators for T cell activation
- Bispecific antibody platforms
To facilitate this comprehensive partnership, the companies will establish a joint development committee that will oversee everything from candidate selection to clinical development, regulatory strategy, and commercialization planning.
Executive Perspectives on the Partnership
Kim Young-joo, CEO of Chong Kun Dang, emphasized the strategic importance of the deal: "This agreement goes beyond simple investment and builds a future-oriented partnership to develop global innovative new drugs by converging the core capabilities of both companies. We will secure competitiveness to enter the global market by expanding our bio-new drug portfolio based on AbClon's next-generation immune cell therapy platform and independent antibody development technology."
Lee Jong-seo, CEO of AbClon, expressed similar enthusiasm: "The agreement with Chong Kun Dang, which has the best R&D know-how in Korea, is a true shared growth model that goes beyond the limits of Korean biotech. We aim to transform into a global platform innovative therapeutic corporation through this collaboration."
Strategic Significance for Both Companies
For Chong Kun Dang, this investment represents a significant step into the advanced cell therapy space, diversifying beyond its traditional pharmaceutical portfolio. The company gains access to cutting-edge technology platforms while leveraging its established commercialization infrastructure in the Korean market.
AbClon benefits from both the capital infusion and Chong Kun Dang's extensive experience in drug development, regulatory affairs, and commercialization. The partnership provides a pathway to market for its lead asset while supporting the broader development of its technology platforms.
The collaboration highlights the growing trend of established pharmaceutical companies partnering with biotech innovators to accelerate the development of next-generation therapies, particularly in the rapidly evolving field of immuno-oncology.
