LG Chem teams with Cue Biopharma in $405m plus oncology deal

LG Chem Life Sciences will offer up its biomanufacturing experience and potentially add downstream capabilities for Cue Biopharma’s biologic candidates under terms of the strategic partnership.

Korean chemical company LG Chem’s life science business and Massachusetts-based Cue Biopharma have entered into a multi-target strategic collaboration to develop multiple candidates using the Immuno-STAT biologic platform.

Cue’s Immuno-STAT biologics are designed for targeted modulation of disease-associated T cells and lead candidate CUE-101 targets human papillomavirus (HPV)-associated cancers.

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Under terms of the deal, LG will provide research funding, CMC process development and potentially additional downstream manufacturing capabilities for CUE-101, as well as Immuno-STAT biologics that target T cells against two additional cancer antigens.

In addition to launching Cue’s Asia strategy, CEO Dan Passeri said LG “provides us with world-class manufacturing capabilities for our Immuno-STAT program in oncology,” during a third quarter financial call this week.

“We conducted a competitive process evaluating multiple potential partners for the Asia territory, and we believe that LG Chem represents an outstanding strategic partner with strong immunology and technology competencies as well as top-tier proven biologics manufacturing and development capabilities,” he told investors.

“We are proud to have LG Chem as our strategic partner as they offer leading biologics capabilities as well as clinical development capabilities that will enhance our ability to engage in global development of our CUE-100 series.”

LG Chem will pay Cue Biopharma an undisclosed upfront payment and make a $5 million (€4.4 million) equity investment in the firm, though could pay a further $400 million in milestone payments and royalties.

Furthermore, LG has the option to select an additional fourth program. If the option is taken Cue would be eligible to receive up to $675 million in fees and milestone payments.