AbClon announced on Tuesday that it has signed an exclusive technology transfer agreement with TCT Health Technology, a Turkish company, for its homegrown CAR-T cell therapy, AT101.
The agreement, signed on Feb. 28, will remain valid for 20 years from its effective date. Under the deal, AbClon will transfer CD19 CAR sequences, CD19 CAR-T-specific manufacturing processes and analytical methods, as well as CMC-related technologies. In return, TCT Health Technology will gain exclusive rights to develop and commercialize AT101 in the Turkish market.
The two companies have been collaborating since January, when they signed a memorandum of understanding (MOU). At the time, TCT Health Technology announced on LinkedIn that the final agreement was expected to be signed in the first quarter of 2025. The partnership aims to advance CAR-T cell therapy applications, strengthen cooperation in clinical and commercial manufacturing, and promote local technology transfer and R&D innovation.
The financial terms of the deal were not disclosed due to confidentiality agreements. However, the agreement includes an upfront payment (to be made within 60 days of signing), milestone payments tied to the approval of the IND application, and an ongoing technology fee based on net sales. AbClon noted that the upfront payment exceeds 10 percent of its annual revenue.
The agreement stipulates that sales payments must commence by December 31, 2027, unless modified through mutual written agreement. If this condition is not met, AbClon reserves the right to immediately terminate all rights and reclaim them at no cost. However, any upfront and milestone payments already made will remain non-refundable.
In the event of a material breach of the agreement, the non-breaching party will provide a 60-day period to resolve the issue. If the breach remains unresolved within this timeframe, or in the case of bankruptcy or liquidation, the agreement may be terminated. In such instances, no payments will be refunded.
AT101 is an anti-CD19 CAR-T cell therapy designed for patients with relapsed or refractory B-cell non-Hodgkin lymphoma. AbClon filed an IND for the therapy in Korea in June 2021,received approval in December of the same year, and is currently conducting phase 1/2 clinical trials.
Meanwhile, according to the company’s disclosure on Jan. 31, AbClon reported a revenue of 3 billion won ($2.05 million) in 2024, along with an operating loss of 15.2 billion won and a net loss of 15.9 billion won. The increased costs associated with the phase 2 clinical trial of AT101 were cited as the primary reason for the losses.
AbClon’s revenue in 2024 declined by 1.9 percent year-on-year, while its operating loss widened by 32.2 percent to 15.2 billion won, compared to 11.5 billion won in the previous year.
Source: koreabiomed