Kangstem Biotech Co., Ltd.’s Post

Kangstem Biotech(“Kangstem”) announced, on Nov 7, 2024, that it has entered into a licensing agreement with YooYoung Pharmaceutical(“YooYoung”), a company specialized in musculoskeletal products in South Korea, for its stem cell-based combination therapy with acellular cartilage matrix, OSCA, which is being developed for the fundamental treatment of osteoarthritis.   Under the terms of the agreement, Kangstem will receive a total of at least KRW 14 billion, which includes an upfront payment of KRW 2 billion, short-term milestone payments of KRW 6 billion. Additionally, further KRW X billion payments will be made if certain conditions, such as conditional approval during the clinical process, are achieved.   YooYoung will be fully responsible for KRW XX billion of clinical costs and development process of the Phase 2b and 3 clinical trials of OSCA, as well as the subsequent exclusive sales and distribution in South Korea. As a result, Kangstem will significantly reduce its R&D expenses and expects to generate revenue from providing OSCA as investigational products. Additionally, Kangstem will handle manufacturing and supplying for the domestic market and receive sales royalties, ensuring a long-term revenue stream.   OSCA aims to provide a fundamental treatment for osteoarthritis through intra-articular injection into the knee joint, without the need for surgery. The global population of osteoarthritis patients is estimated to be around 600 million, and with the increase of the aging population, the demand for related treatments is rapidly increasing. However, existing osteoarthritis treatments on the market only provide pain relief, and no DMOAD are available. OSCA has shown significant improvements in both pain relief and structure, such as cartilage repair and subchondral bone regeneration in its Phase 1 clinical trial, and is expected to meet the unmet medical needs of patients and establish itself as a global blockbuster drug.   Kangstem Biotech expects to secure the full result of the OSCA Phase 1 clinical trial in November. Following this, the company plans to present clinical data from the Phase 1 clinical trial, including MRI images showing structural improvements such as cartilage regeneration at various international conferences.   “This License-out is significant as it marks our first agreement through our unique technologies and development, and it is also the world’s first License-out for a stem cell-based combination therapy.” said JongCheon Na, the Chief Executive Officer of Kangstem. “Moreover, it was executed during the Phase 1 clinical trial at the early stage of development, and the early recognition of OSCA’s efficacy and potential as an osteoarthritis treatment makes this a meaningful achievement. In particular, we believe this deal will serve as a stepping stone, potentially leading to additional major deals, such as global technology exports.” https://lnkd.in/gK5QRvGp

[약업신문]강스템바이오텍, 유영제약에 골관절염 신약후보 ‘OSCA’ L/O 성공

[약업신문]강스템바이오텍, 유영제약에 골관절염 신약후보 ‘OSCA’ L/O 성공

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