South Korean biopharmaceutical companies 1ST Biotherapeutics, Inc. (1STBIO) and LigaChem Biosciences (LigaChemBio) announced on April 22, 2025, that they have formalized a strategic partnership and licensing option agreement focused on co-developing novel oncology therapeutics, specifically targeting antibody-drug conjugates (ADCs) and small molecule immuno-oncology therapies.
The agreement expands upon an existing collaboration that began in December 2024 and will see the two companies working together to identify and develop between two and four novel drug candidates over a three-year period. The partnership aims to address current limitations in ADC payload technology while advancing first-in-class or best-in-class oncology programs.
Partnership Structure and Financial Terms
Under the terms of the agreement, LigaChemBio will provide the initial funding for joint research and development activities while retaining exclusive licensing options for the resulting drug candidates. Upon exercising these options, LigaChemBio will gain the right to out-license the assets to third parties, with revenue sharing arrangements in place with 1STBIO. The companies have not disclosed specific financial details of the agreement.
The decision to expand their collaboration came after recognizing strong synergies between their research teams during their initial joint project. This expanded alliance strategically combines 1STBIO's expertise in small molecule drug discovery with LigaChemBio's proprietary ADC platform technology, ConjuAll™.
Strategic Focus on ADC Innovation
Antibody-drug conjugates represent one of the fastest-growing segments in oncology therapeutics, combining the targeting precision of monoclonal antibodies with potent cytotoxic payloads. The partnership specifically aims to develop novel payloads that could potentially overcome limitations of current ADC technologies.
Jamie Jae Eun Kim, CEO of 1ST Biotherapeutics, emphasized the collaborative potential: "1STBIO's cutting-edge R&D capabilities are at the core of this collaboration. By combining our strengths, we aim to not only advance ADC payload innovation, but also to drive meaningful breakthroughs in small molecule immuno-oncology. This expanded partnership reflects our commitment to building sustainable, innovation-driven biotech alliances."
Complementary Expertise
The alliance brings together complementary capabilities from both organizations. 1STBIO, founded in 2016 and headquartered in Yongin, South Korea, has established itself as a science-driven biopharmaceutical company with a focus on immuno-oncology, neurodegenerative diseases, and rare diseases.
LigaChemBio (KOSDAQ: 141080), a clinical-stage biopharmaceutical company founded in 2006, brings its proprietary medicinal drug discovery technology and ADC platform technology ConjuAll™ to the partnership. The company has historically focused on the research and development of antibody-drug conjugates and anticancer therapeutics.
Yong-Zu Kim, CEO of LigaChemBio, expressed enthusiasm about the collaboration: "We are pleased to collaborate with 1STBIO, a company with strong capabilities in small molecule drug discovery and oncology. Beyond this partnership, we will continue to pursue open innovation with biotech companies worldwide to deliver transformative therapies to patients."
Market Context and Potential Impact
The ADC market has seen significant growth and investment in recent years, with several successful commercial products demonstrating the potential of this therapeutic approach. Current challenges in ADC development include optimizing the therapeutic window, managing toxicity profiles, and improving manufacturing processes.
By focusing specifically on novel payload development, the 1STBIO-LigaChemBio collaboration addresses a critical component of ADC technology. Innovative payloads could potentially improve efficacy, reduce off-target toxicity, and expand the range of cancers treatable with ADC approaches.
The partnership also extends beyond ADCs to include small molecule immuno-oncology therapies, reflecting the growing interest in combining multiple therapeutic modalities to address complex cancer biology.
Future Outlook
While specific therapeutic targets have not been disclosed, the companies' focus on developing first-in-class or best-in-class oncology programs suggests ambitious goals for the collaboration. The three-year timeline indicates a commitment to advancing candidates through early discovery and potentially into preclinical development.
The out-licensing strategy outlined in the agreement suggests that neither company intends to commercialize the resulting candidates independently, instead seeking partnerships with larger pharmaceutical companies for late-stage development and commercialization.
This strategic approach aligns with broader industry trends of smaller biotechnology companies focusing on innovation while partnering with larger organizations for later-stage development and commercialization, potentially accelerating the path to bringing new oncology therapeutics to patients.
