ABION signs term sheet for potential $800 mil. antibody licensing deal

Korean biotech ABION said on Monday it has signed a term sheet with an undisclosed antibody-drug conjugate (ADC) developer based in Boston to license out a set of monoclonal and bispecific antibody candidates, including its experimental cancer therapy ABN501.

ABN501 is a first-in-class antibody candidate targeting Claudin 3 (CLDN3), a protein involved in tight junctions between cells that is frequently overexpressed in solid tumors such as ovarian, pancreatic and prostate cancers. ABN501 is designed to trigger antibody-dependent cellular cytotoxicity (ADCC), a mechanism in which the immune system is activated to destroy cancer cells tagged by the antibody.

The candidate is being developed for multiple therapeutic formats, including ADCs and bispecific antibodies, for the treatment of CLDN3-positive tumors.

ABION said that if a definitive licensing agreement is reached, the total value of the deal is expected to exceed $800 million. “The term sheet reflects similar terms to what we anticipate in the final agreement, and we expect to conclude the licensing deal in the near future,” the company said in a statement.

No further details were disclosed, including potential upfront payments, milestones, royalties, or the partner’s identity. The term sheet reportedly covers three antibody-based assets, including ABN501 and two additional candidates targeting CLDN3.