[Bio Story]② Lee Sanghoon, CEO of ABL Bio: "'ABL 2.0' Proves Survival"

Interview with Lee Sanghoon, CEO of ABL Bio (Part 2)


Delaying Technology Transfer to Increase Deal Valuation

Aiming for a ‘Bio-Pharma’ Transition through Royalty Income

During an interview with The Asia Business Daily at the ABL Bio headquarters in Gangnam-gu, Seoul, on the 26th of last month, Sanghoon Lee, CEO of ABL Bio, stated, "ABL Bio is currently at the 'ABL 2.0' stage," explaining that the company is shifting its focus from growth to survival. He noted that while the first decade—starting in 2016 with just 14 researchers, going public after 34 months, and expanding into a company with about 120 employees—was a period of rapid external growth, the current phase requires the addition of 'sustainability' to the business.

Sanghoon Lee, CEO of ABL Bio, is being interviewed by The Asia Business Daily at the company headquarters in Gangnam-gu, Seoul on the 26th of last month. Photo by Dongju Yoon

CEO Lee explained his emphasis on survival over growth by saying, "Growth itself is actually easy; the real challenge is surviving on our own and generating profits after going public." For the company to survive independently, technology transfer deals must be continuous, ensuring steady inflows of upfront payments and milestone fees. If this chain breaks, the company is forced to rely on external funding. According to Lee, the reason why it is rare for domestic biotech firms to meet the performance forecasts submitted to the stock exchange upon listing is that this chain does not function smoothly.

This context explains why the core of the ABL 2.0 strategy is to 'delay the timing of technology transfers.' While upfront payments for preclinical stage deals usually amount to only several tens of millions of dollars, transferring a compound after completing Phase 1 clinical trials can yield upfront payments exceeding 100 million dollars, along with larger milestone payments. In other words, instead of rushing to sell early-stage assets, the company aims to maximize their value before bringing them to the negotiating table.

For this strategy to succeed, there must be a platform compelling enough for big pharma to wait until clinical data is available. ABL Bio's competitive edge lies in its blood-brain barrier (BBB)-penetrating shuttle platform, 'Grab Bada-B,' which delivers drugs directly to the brain. Lee summarized the competitive advantages as rarity and scalability. Rarity is an immediate strength. He said, "Although Korea lags behind China in most technologies, when it comes to BBB shuttles, we are ahead of any Chinese company." Scalability, however, is a challenge that must be proven. Lee noted that neither ABL Bio's insulin-like growth factor 1 receptor (IGF1R) nor competitors’ transferrin receptors are universal for all modalities; to extend the platform’s lifespan, the company must continuously develop new versions—beyond existing shuttles—such as 'Bio Beta.' This next-generation strategy to expand the 'cargo' carried by the shuttle starts here.

The first step is small interfering RNA (siRNA). A key point CEO Lee emphasizes is that "there are two barriers for IRNA." While antibodies complete their function by binding to extracellular proteins after crossing the blood-brain barrier, IRNA must not only cross this barrier but also enter the inside of neurons to be effective. IGF1R has a higher ability to enter neurons than the transferrin receptor. Therefore, Lee stressed that as the difficulty of cargo delivery increases, ABL Bio’s shuttle becomes more advantageous. To overcome this second barrier, ABL Bio created a modified version of Grab Bada-B, altering its structure and form. Lee described this as "a form that even existing BBB researchers could not have imagined." Data on this modified shuttle will be released as early as the end of this year or during next year and can be immediately applied to the ongoing IRNA collaboration with Eli Lilly.

Another pillar of expansion is the 'dual shuttle' that targets two receptors simultaneously. While competitors have developed dual shuttles using 'CD98 HC,' Lee pointed out that this target cannot enter neurons and is thus only suitable for antibody delivery. In contrast, ABL Bio is developing a format that combines the transferrin receptor with IGF1R to enhance efficiency for both antibodies and IRNA. The company has already secured two versions and, through AI, has discovered three or four new shuttle targets. There is also a plan to expand the cargo beyond antibodies and IRNA to enzymes and proteins, but due to the significant verification burden, the company is weighing external collaborations or licensing rather than pursuing independent development.

The endpoint envisioned by ABL Bio is 'ABL 3.0.' Once the company secures around two compounds after Phase 2 clinical trials and commercial royalties begin to flow in, it aims to establish itself as a 'bio-pharma' company—positioned between biotech and pharmaceutical firms. Lee cited Genentech, Amgen, and Regeneron as role models. However, since the platform is taken over and directly developed by partners, it is difficult to negotiate high royalty rates. This is why, in the next stage, he seeks to increase revenue sharing not just through simple technology transfers but via joint development. He said, "The value of the platform grows significantly the moment it is validated in clinical trials."

This content was produced with the assistance of AI translation services.