China-based Northeast Pharmaceutical Co., Ltd (SHE: 000597) has announced plans to invest RMB 500 million ($71 million) in establishing a wholly-owned subsidiary in Shanghai. The new entity is designed to accelerate the implementation of in-licensed antibody drug conjugates (ADCs) and chimeric antigen receptor (CAR)-T cell therapies, following a recent ADC-focused deal with US-headquartered MedAbome.
Subsidiary Focus and Objectives
The subsidiary will initially concentrate on the research and development (R&D) of programs licensed from MedAbome and will also establish a small culture medium production platform. This strategic move aims to enhance Northeast Pharmaceutical’s capabilities in developing innovative therapies and leveraging MedAbome’s proprietary technologies.
Licensing Deal with MedAbome
Earlier this month, Northeast Pharmaceutical and MedAbome struck a $15 million licensing deal, granting Northeast access to MedAbome’s MAb11-22.1 antibody and related proprietary technologies. The two companies agreed to co-develop ADCs and CAR-T cell therapies based on the antibody. Additionally, Northeast will hold all patent, R&D, regulatory filing, manufacturing, and commercialization rights to the antibody and drugs outside of the US, Canada, and Mexico.
Future Outlook
The establishment of the Shanghai subsidiary marks a significant step for Northeast Pharmaceutical in expanding its R&D and manufacturing capabilities. By focusing on ADCs and CAR-T therapies, the company aims to address significant unmet needs in oncology and contribute to the development of next-generation treatments.-Fineline Info & Tech
