According to the agreement, Y-Biologics will receive up to KRW 116.4 billion, including a non-refundable upfront payment, milestone fees for preclinical and clinical development stages, commercialization, and sales. Royalties will be additionally received according to the sales volume.

YBL-003 licensed out by Y-Biologics is an IgG-based immune checkpoint inhibitor. However, the exact target was undisclosed. According to Y-Biologics, YBL-003 has a mechanism to regulate the function of macrophages and T cell activity to reactivate immune cells in the tumor microenvironment (TME) and kill cancer cells. It is expected that the scope of the indications will be expanded to include solid tumors such as stomach cancer, lung cancer, and breast cancer.

The recent agreement is the first fruit of the joint research between the two companies that kicked off last year. The term of the joint research contract is 3 years, but it may be extended for 2 additional years. According to the terms and conditions of the contract, three targets will be examined each year, meaning that fifteen targets may be jointly researched and licensed during the maximum contract period of 5 years.

Y-Biologics discovered a new antibody from Ymax®-ABL, a human antibody library, and Pierre Fabre verified that the antibody has the functional properties of an immune checkpoint inhibitor that reactivates a major immunosuppressive mechanism in the TME.

Young Woo Park, CEO of Y-Biologics, said, “It brings me great pleasure to have signed the first license agreement with Pierre Fabre. [...] With the joint research being conducted on other innovation targets based on mutual trust, the collaboration between Y-Biologics and Pierre Fabre is expected to further advance the development of innovative immuno-oncology therapeutics targeting the tumor microenvironment.”

 “We are very pleased to collaborate with Y-Biologics to discover a first-in-class drug that regulates the tumor microenvironment,” said Nathalie Corvaïa, Director of Center of Immunology R&D Pierre Fabre, who then added, “Pierre Fabre signed the license agreement after noting the excellence of the drug, and through further development, we will come up with a treatment that can help suffering patients.”