Adagene Inc. and Third Arc Bio have expanded their strategic licensing agreement, originally signed in November 2025. The partnership leverages Adagene's NEObody and SAFEbody technology platforms to develop masked CD3 T cell engagers targeting tumor-associated antigens. Third Arc Bio has selected its first lead candidate under the expanded agreement.
Under the terms of the partnership, Third Arc Bio will sponsor and fund the clinical development of the selected program. The total potential payments to Adagene have increased due to the broadened scope of the collaboration. Adagene retains a no-cost option to develop and commercialize candidate molecules in Greater China, Singapore, and South Korea.
Adagene is a clinical-stage biotechnology company focused on antibody-based cancer immunotherapies. The company's SAFEbody technology uses precision masking to shield the binding domain of biologic therapies for tumor-specific targeting while minimizing toxicity in healthy tissues. Adagene's lead clinical program, Muzastotug, is a masked anti-CTLA-4 SAFEbody with FDA Fast Track designation. The program is currently in Phase 1b/2 and Phase 2 clinical studies in combination with anti-PD-1 therapy, focusing on microsatellite stable metastatic colorectal cancer.
Peter Lebowitz, Chief Executive Officer of Third Arc Bio, stated: "We are pleased with the progress of this collaboration and the first lead selection." Peter Luo, Chairman, President of R&D, and Chief Executive Officer of Adagene, noted that the company is deepening its partnership with Third Arc Bio.
