AbClon announced Tuesday a significant technology transfer agreement with TCT Health Technology, a Turkish company, for its domestically developed CAR-T cell therapy, AT101. The exclusive deal, finalized on February 28th, grants TCT Health Technology exclusive rights to develop and commercialize AT101 within the Turkish market for the next 20 years.
Under the agreement, AbClon will transfer key components of AT101, including CD19 CAR sequences, specific manufacturing processes, analytical methods, and CMC-related technologies. In return, TCT Health Technology will be responsible for bringing the therapy to patients in Turkey.
The collaboration between the two companies isn’t new; they previously signed a memorandum of understanding (MOU) in January. At that time, TCT Health Technology had indicated on LinkedIn that the comprehensive agreement was anticipated to be signed in the first quarter of 2025. The partnership’s overarching aim is to further CAR-T cell therapy applications, strengthen cooperation in clinical and commercial manufacturing, and drive technology transfer and R&D innovation within Turkey.
While the financial terms of the agreement remain confidential, the deal structure includes an upfront payment, to be made within 60 days of signing, along with milestone payments tied to the approval of the IND application. AbClon will also receive an ongoing technology fee based on net sales of the product in Turkey. According to AbClon, the upfront payment exceeds 10 percent of its annual revenue. The agreement stipulates that sales payments must begin by December 31, 2027, unless the date is modified by a mutual written agreement. If this condition is not met, AbClon reserves the right to terminate the agreement and reclaim all rights without further cost. However, any payments already made would remain non-refundable.
The agreement also includes provisions for handling potential breaches. The non-breaching party will have a 60-day window to resolve a material breach of contract. If the breach isn’t resolved within this timeframe, or in cases of bankruptcy or liquidation, the agreement may be terminated. In such scenarios, no further payments will be refunded.
AT101 is designed as an anti-CD19 CAR-T cell therapy for patients with relapsed or refractory B-cell non-Hodgkin lymphoma. The company filed an IND for the therapy in Korea in June 2021, and it was approved in December of the same year. AbClon is currently conducting Phase 1/2 clinical trials.
In related financial news, a January 31st company disclosure revealed that AbClon reported 3 billion won ($2.05 million) in revenue for 2024, alongside 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 factor contributing to these losses. AbClon’s revenue in 2024 declined by 1.9 percent year-on-year, while its operating loss widened by 32.2 percent compared to the prior year, from 11.5 billion won to 15.2 billion won.
