Leads Biolabs receives $10M as Oblenio exercises LBL-051 license option

Oblenio Bio exercised its exclusive license option for Leads Biolabs' LBL-051, triggering a $10 million payment to the Chinese biotech.

Nanjing Leads Biolabs received a $10 million payment after U.S. partner Oblenio Bio exercised its exclusive worldwide license option for LBL-051, a trispecific T-cell engager targeting autoimmune diseases.

The exercise triggers a one-time non-refundable and non-creditable payment to Leads Biolabs' U.S. subsidiary and clears the way for global clinical development of LBL-051 in refractory autoimmune indications, the company said in a statement.

LBL-051, discovered through Leads Biolabs' proprietary LeadsBody platform, simultaneously targets BCMA, CD19 and CD3 to eliminate pathogenic B cells and plasma cell populations. Preclinical data presented at EULAR 2026 showed broad B-cell and plasma cell depletion with subsequent emergence of immature B-cells and no cytokine release syndrome, suggesting potential for durable drug-free remission.

The deal, signed in November 2024 with Oblenio Bio — a company formed by Aditum Bio — transfers development costs to the U.S. partner while providing near-term non-dilutive cash. The stock rose 3.9 percent on the announcement, and the most recent analyst rating is a Buy with a HK$100.50 price target.

The LeadsBody platform is a CD3 T-cell engager technology that Leads Biolabs has used to develop multiple candidates. The company's pipeline includes 14 drug candidates, with five in clinical stages and one at registration stage. Beyond LBL-051, the platform has produced LBL-024 (Opamtistomig), a PD-L1/4-1BB bispecific antibody that received Breakthrough Therapy Designation from China's NMPA in October 2024 and Orphan Drug Designation from the U.S. FDA in November 2024. In January 2026, the drug also received Fast Track Designation from the FDA and Orphan Drug Designation from the European Commission for extrapulmonary neuroendocrine carcinoma.

LBL-024's Phase II data in non-small cell lung cancer, published at the World Conference on Lung Cancer, showed an objective response rate of 65 percent and a disease control rate of 95 percent among 60 efficacy-evaluable patients receiving first-line treatment in combination with chemotherapy. In the squamous subgroup, the ORR reached 77.4 percent, while the non-squamous subgroup posted 51.7 percent. Updated data with more than seven months of follow-up are scheduled for an oral presentation at WCLC on September 14.

Leads Biolabs has also developed the X-body bispecific platform, the TOPiKinectics antibody-drug conjugate platform, and the ImBiTDC T-cell engager platform. Founded in 2012, the company has established integrated capabilities spanning early discovery, translational medicine, clinical development, CMC and business development.

LBL-051's Mechanism Targets Refractory Autoimmune Disease

The trispecific design of LBL-051 is intended to provide broader elimination of pathogenic B cells and plasma cells than existing therapies. By engaging CD3 on T cells while simultaneously targeting BCMA and CD19 on B cells and plasma cells, the drug aims to reset the immune system in patients with refractory autoimmune conditions. The preclinical data from EULAR 2026 showed no cytokine release syndrome, a common safety concern with T-cell engagers.

The approach differs from standard-of-care autoimmune therapies, which typically rely on broad immunosuppression. T-cell engagers like LBL-051 aim to selectively deplete disease-driving B cells and plasma cells while allowing the immune system to regenerate, potentially enabling long-term drug-free remission. This mechanism has drawn interest from major pharmaceutical companies, with several pursuing similar B-cell depletion strategies for autoimmune indications.

What the Deal Means for Leads Biolabs' Balance Sheet

The $10 million payment provides non-dilutive capital to Leads Biolabs' U.S. subsidiary, and future milestone payments and royalties could add further upside. The company's market capitalization stands at HK$14.9 billion, with average daily trading volume of approximately 1.8 million shares. The stock trades with a technical sentiment signal of Strong Buy, according to TipRanks data.

The company cautions that successful development and marketing of LBL-051 are not assured. Clinical development of the drug will now be led by Oblenio Bio, backed by Aditum Bio, a U.S. venture firm that has formed multiple biotech companies around promising assets.

For investors, the deal reduces the financial risk of LBL-051 development while retaining upside through milestone payments and royalties. The analyst consensus rating on 9887.HK is a Buy with a HK$100.50 price target, suggesting the market sees further value in the company's broader pipeline, including LBL-024's ongoing Phase II studies in non-small cell lung cancer. The company's diversified platform approach — spanning T-cell engagers, bispecific antibodies, antibody-drug conjugates and T-cell engagers — provides multiple shots on goal across oncology and autoimmune indications.

This article is for informational purposes only and does not constitute investment advice.