[Click eStock] "LegoChem Bio, Positive Outlook on 2.2 Trillion KRW Technology Transfer to Janssen"

On the 27th, SK Securities raised the target price of LegoChem Biosciences to 74,000 KRW, expecting a revaluation of the pipeline value following Janssen's technology transfer contract worth 2.2 trillion KRW. The investment opinion was maintained as 'Buy.'

LegoChem Biosciences announced that it had signed a technology transfer agreement with Janssen Biotech for the development and commercialization of the Trop2 ADC ‘LCB84’ the previous day. The total contract amount, excluding royalties, is $1.72 billion (approximately 2.2 trillion KRW).

Researcher Donggeon Lee analyzed, "This technology transfer is the largest technology transfer contract among domestic pharmaceutical/biotech companies in 2023 and aligns with the recent active technology transfers and mergers & acquisitions (M&A) trends of global big pharma related to ADCs. It is expected to serve as an opportunity to reaffirm LegoChem Biosciences’ position in the global ADC market."

He added, "Starting with this technology transfer, in 2024, a revaluation of the pipeline value is expected through clinical outcome confirmations of the transferred pipelines, along with additional ADC technology transfer achievements."

Attention is also focused on the clinical results of the ROR1 ADC ‘CS5001’ transferred to Syston and the HER2 ADC ‘IKS014’ and CD19 ADC ‘IKS03’ transferred to Iksuda. It is also analyzed that discussions on ADC platform technology transfers are progressing smoothly.

Researcher Donggeon Lee emphasized, "In 2024, continuous re-rating is expected as additional ADC platform and substance technology transfers and development outcomes of clinical-stage pipelines are sequentially confirmed. It is necessary to view the LCB84 technology transfer not as the end of material but as the beginning of momentum."