In a strategic move to advance cancer treatment, Legend Biotech Ireland Limited, a subsidiary of Legend Biotech, has forged an exclusive, global licensing agreement with pharmaceutical titan Novartis. The deal, valued at $100 million upfront with the potential for an additional $1.1 billion in milestone payments, centers on the promising CAR-T cell therapy candidate LB2102 and other therapies targeting the Delta-like ligand protein 3 (DLL3).
This collaboration is poised to accelerate the development of LB2102, which has already garnered significant attention following the FDA’s clearance of its Investigational New Drug application last year. The therapy is currently in a Phase 1b clinical trial, with results anticipated for publication in the coming year. Novartis has committed to funding the trial and will spearhead the development of the licensed products.
The FDA’s Orphan Drug Designation for LB2102 earlier this year underscores the therapy’s potential in addressing unmet medical needs, particularly in the treatment of small cell lung cancer, which represents 10-15% of lung cancer cases. Guowei Fang, Legend Biotech’s chief scientific officer and head of business development, emphasized the synergy between the two companies, noting that Novartis’ T-Charge platform could significantly mitigate manufacturing challenges previously faced by Legend, expediting the delivery of the therapy to patients.
This licensing agreement is the latest in a series of strategic acquisitions by Novartis, following a $1.3 billion deal with Chong Kun Dang Pharmaceutical for CKD-510. These moves come on the heels of Novartis’ reported 12% year-over-year sales increase, driven by strong performances from products like Kesimpta, Entresto, and Kisqali.
The partnership reflects a broader trend in the pharmaceutical industry, where established firms seek out innovative candidates from smaller biotech companies, particularly in the burgeoning field of CAR-T therapy. Fang highlighted the commercial viability of CAR-T therapies, especially for treating solid tumors, as a compelling investment opportunity for large drugmakers.
Fang also shared insights for biotech executives navigating future pharma licensing deals, advising them to view such collaborations as more than mere transactions. Aligning on innovation and infrastructure capabilities is crucial for a successful partnership. “A licensing deal is trying to combine the strengths of both sides, including organizationally and technologically,” Fang stated. For Legend Biotech, the deal represents a capital infusion that will bolster further investment in their pipeline.
