LegoChem Biosciences has proved LCB14's competitiveness, a human epidermal growth factor 2 (HER2)-ADC candidate, through positive results from its phase 1a and 1b trials in patients with HER2-positive breast cancer, amid growing anticipations for antibody-drug conjugates (ADCs), an analyst said.

The company had previously granted exclusive rights for the development and commercialization of LCB14 in China to Fosun Pharma, a Chinese biopharmaceutical company, in October 2021. The company also provided exclusive global rights for the development and commercialization of the treatment, except for China and Korea, to Iksuda Therapeutics, a U.K. biotech firm, in December 2021.

"Iksuda Therapeutics presented the interim results from the phase 1a and 1b clinical trials for LCB14 during the World ADC conference, held on Sept. 9," Shinhan Investment Corp. analyst Lee Dong-gun said.

The trial included a total of 52 patients, of which 11 were HER2-low patients, and the recommended phase 2 dose (RP2D) confirmed in the phase 1a studies based on dose-limited toxicity (DLT) was 2.3mg/kg(mpk).

"As a result of evaluating 24 patients who received 2.3mpk, the overall response rate was 46 percent, including one complete remission (CR) patient," Lee said. "Also, 42 percent of the patients achieved stable disease (SD) and more than 75 percent of patients remain on treatment as of data cutoff on July 7."

Lee said it was encouraging that patients participating in the trial did not suffer from interstitial lung disease (ILD), a typical side effect of Daiichi Sankyo’s Enhertu.

"While the company observed low-grade side effects, such as keratitis and anemia, the company only confirmed one grade 3 or higher adverse reaction, which was hypokalemia," Lee said.

The clinical data, including additional updates and details, will be presented by Fosun Pharma at the San Antonio Breast Cancer Symposium conference to be held in December this year, Lee added.

Lee stressed that such positive data comes as ADCs have become one of the prominent technologies in the global licensing deal trend.

"After Daiichi Sankyo and AstraZeneca presented the clinical results of Enhertu during ASCO 2022 in June, there have already been six technology transfer cases related to ADCs until August," Lee said. "With growing interest in the field, LegoChem, which has proven its platform technology competitiveness, may also benefit from the positive study data."

Taken together, Lee said his brokerage maintained a "buy" opinion on LegoChem shares at 67,000 won ($48).

On Monday, shares of LegoChem Biosciences fell 1.68 percent to close at 38,000 won.