GC Cell, Artiva-MSD Terminate Joint Development Agreement for 'CAR-NK' Therapy

GC Cell announced on the 25th that it has terminated the joint research and development contract for chimeric antigen receptor (CAR)-natural killer (NK) solid cancer treatment with its U.S. affiliate, Artiva Biotherapeutics. As of the end of last year, Artiva is a U.S.-based affiliate in which GC Cell holds a 26% stake (common shares), and Green Cross Holdings holds 19.1%.

GC Cell logo (Photo by GC Cell)

The terminated contract was related to an agreement between Artiva and U.S. MSD in 2021 to jointly develop three CAR-NK cell therapies. At that time, Artiva exported cell therapy development technology to MSD and pursued joint research and development (R&D), signing a contract worth up to $1.866 billion (approximately 2.5891 trillion KRW).

GC Cell (then Green Cross LabCell) separately signed a research contract with Artiva regarding this matter. Initially, they proceeded with two CAR-NK cell therapies, receiving a contract payment of $15 million (approximately 20.8 billion KRW), and it was expected that they could earn up to $981.75 million (approximately 1.362 trillion KRW) by combining milestone payments of $966.75 million (approximately 1.3414 trillion KRW) based on future development, approval, and sales.

Subsequently, GC Cell received the contract payment from Artiva and completed all commissioned research services.

Additionally, in April 2022, GC Cell and Artiva raised expectations by announcing a joint cancer drug research project combining the NK cell therapy AB-101 under development with MSD’s trispecific NK cell engager antibody.

However, on the 25th, MSD notified Artiva of the termination of the joint research and development contract through an internal decision, which naturally led to the termination of the related contract between GC Cell and Artiva.

A company official explained, "It appears to be a change resulting from MSD’s shift in pipeline priorities," adding, "The joint research contract for the combination of AB-101 and the trispecific NK cell engager antibody remains in place."