Korean biosimilar specialist Celltrion has penned a deal worth more than $740 million biobucks for two preclinical autoimmune assets from U.S. biotech Kaigene.
One of the antibodies, dubbed KG006, is a next-generation FcRn inhibitor Kaigene has touted as having a “novel antibody structure, offering extended durability and best-in-class potential compared with existing therapies.”
FcRn inhibitors have proven their worth for treating a chronic autoimmune disease called generalized myasthenia gravis, notably argenx’s Vyvgart Hytrulo, UCB's Rystiggo and Johnson & Johnson’s Imaavy.
The other asset in today’s deal, called KG002, is a dual-acting antibody that “selectively degrades disease-specific autoantibodies and simultaneously suppresses disease-specific B cells in certain autoimmune disorders.”
Celltrion is paying $8 million upfront for the two drugs, with up to $736 million in potential milestone payments—including $11 million in near-term milestones. In return, the Korean company receives worldwide rights to KG002 and the rights to KG006 everywhere bar greater China and Japan. Kaigene will also receive tiered royalties on net sales should either drug make it to market.
The Nov. 3 release made no mention of the specific autoimmune indications for which Celltrion will be developing the antibodies.
Maryland-based Kaigene uses its platform to selectively degrade pathogenic antibodies associated with various autoimmune diseases. The company was set up in 2022 with a business model focused on securing partners to take its antibodies into the clinic and onto commercialization.
“We believe that Celltrion, with its world-class infrastructure and fully integrated capabilities across manufacturing, clinical development, regulatory approval, and global commercialization of antibody therapeutics, is the ideal partner to bring Kaigene's innovations to patients worldwide,” Kaigene CEO Minjae Shin said in the release.
The deal could mark a new chapter for Celltrion, which, until this point, has specialized almost exclusively in biosimilars. Most recently, the Incheon, South Korea-based company inked an agreement to purchase Eli Lilly’s drug substance plant in Branchburg, New Jersey.