LegoChem Biosciences, a Kosdaq-listed drug development company, said Tuesday that it signed a technology transfer agreement with Janssen Pharmaceuticals, a pharmaceutical company wholly owned by Johnson & Johnson, for the development and commercialization of LCB84, antibody-drug conjugate (ADC) candidate.

Under this accord, LegoChem will receive an upfront payment of $100 million, an exclusive development rights payment of $200 million, and royalties of up to $1.7 billion on net sales, including milestones for development, licensing, and commercialization.

ADCs are a class of biopharmaceuticals designed as targeted therapies to treat cancer. Unlike chemotherapy, ADCs are intended to target and kill tumor cells while sparing healthy cells.

LCB84 is an ADC candidate with ADC platform technology, Trop2, licensed from an Italian biotech start-up, Mediterranea Theranostic, and recently entered phase 1/2 clinical trials in the U.S., targeting solid tumors such as breast cancer.

The two companies will collaborate on the ongoing phase 1/2 clinical trial of LCB84 and Janssen will be responsible for clinical development and commercialization.

Preclinical data have demonstrated the LCB84's potential for safety and efficacy across a range of cancers, LegoChem said.

"We are very pleased to collaborate with Janssen on LCB84," said LegoChem Biosciences CEO Kim Yong-zu. "We will continue to strengthen our global clinical development capabilities and accelerate the progression of subsequent ADCs into the clinic."

Meanwhile, following the news of the technology transfer agreement, LegoChem's stock price soared to 57,400 won ($44.3), up 10.4 percent from the previous day.