LegoChem lands $415M backing as Orion pushes into biopharma

15 Jan 2024
firstwordpharma.com
ADCAcquisition
Orion Group has agreed to buy a controlling 25.7% stake in biotech startup LegoChem Biosciences for KRW 548.5 billion ($415 million) as it delves deeper into the biopharmaceuticals market. The deal announced Monday comes on the heels of Johnson & Johnson acquiring a global license for LegoChem's TROP-2 antibody-drug conjugate (ADC) LCB84 for up to $1.7 billion.
Orion is buying the biotech's shares for KRW 56,186 ($43) apiece, or 2.5% higher than its last closing price. The stake grab encompasses some of the stock held by LegoChem CEO Kim Yong-zu, and will make Orion, a South Korean snack and confectionery maker, LegoChem's largest shareholder. Kim retains some shares in the biotech and will remain as CEO.
LegoChem is expected to have full authority over R&D and global marketing, while Orion indicated it will provide robust financial support. "We will help LegoChem grow into a world-class, new-drug development company," stated Hur In-cheol, chief executive at Orion Holdings.
In a deal announced late December, LegoChem and Johnson & Johnson's Janssen unit said they would collaborate on a Phase I/II trial of LCB84 that got underway in October. The study is enrolling patients with advanced solid tumours, including triple-negative breast cancer and colorectal cancer. For related analysis, see Vital Signs: Following the biomarker roadmap for TROP2 ADCs.
Meanwhile, Orion has been strategically making inroads into the biopharmaceuticals market by establishing joint ventures and exploring acquisitions, including the formation of Orion Biologics in 2022, and discussions last year regarding a stake in domestic biopharmaceuticals firm Alteogen, although those talks ultimately faltered.
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