The stock surged 29.84% to 2,850 won ($2.05) on Friday, according to KG Zeroin’s MP DOCTOR, formerly MarketPoint. It also gained 29.88% Thursday.
The rally came after NeoImmuneTech announced a licensing agreement with Tolerance Bio on Aug. 19 for the exclusive development and commercialization rights to NT-I7 (efineptakin alfa) for indications related to thymic dysfunction.
The deal, valued at up to $260 million, marks NeoImmuneTech’s first technology export since its listing on South Korea’s KOSDAQ market in 2021. The agreement also includes royalties based on annual net sales following commercialization.
◇NT-I7 expands into thymic dysfunction
NeoImmuneTech is not licensing NT-I7 in its entirety or across all indications. The deal covers development and commercialization rights specifically for indications related to thymic dysfunction.
NT-I7 is a cytokine designed to promote the production, differentiation, proliferation and survival of T cells. Because the thymus is the organ where T cells are produced and mature, the drug is expected to have potential in treating conditions associated with impaired thymic function.
Tolerance Bio plans to use NeoImmuneTech’s technology to develop a treatment targeting thymic dysfunction and aims to begin a Phase 2 clinical trial.
Founded in 2023, Tolerance Bio is a relatively young biotechnology company. It was founded by Francisco Leon, a drug development veteran who previously worked at Bristol Myers Squibb, AstraZeneca and Janssen, a Johnson & Johnson company.
Leon has also co-founded two biotechnology companies. His first, Celimmune, was acquired by Amgen in 2017, while his second, Provention Bio, was acquired by Sanofi in 2023.
◇Upfront payment comes in equity, not cash
One notable feature of the deal is that NeoImmuneTech will receive the upfront payment in the form of equity rather than cash.
Under the agreement, NeoImmuneTech will receive shares representing a 4% stake in Tolerance Bio. As a result, the deal is not expected to bring immediate cash into NeoImmuneTech.
A NeoImmuneTech official said the company agreed to take an equity stake because it expects Tolerance Bio’s corporate value to rise significantly in the future.
The agreement is valued at up to $260 million, including milestone payments tied to clinical development and sales achievements. NeoImmuneTech will also receive royalties based on annual net sales after commercialization.
NeoImmuneTech had about $24 million in cash and cash equivalents as of the first half of this year, according to its latest report, or roughly 33 billion won. The company has yet to record an annual operating profit since its listing and has raised capital through measures including rights offerings.
◇NT-I7 faces a broader test after halted trials
NeoImmuneTech has pursued multiple indications for NT-I7, including combination therapies with immune checkpoint inhibitors such as Keytruda, as well as treatments for acute radiation syndrome and multiple myeloma.
In multiple myeloma, one of its more recent programs, NeoImmuneTech received approval from the U.S. Food and Drug Administration in November 2025 to proceed with an investigational new drug application and is conducting a trial combining NT-I7 with Janssen’s BCMA-targeted CAR-T therapy.
The company, however, has also discontinued several clinical programs as it narrowed its development strategy.
In May, NeoImmuneTech said it had voluntarily withdrawn a Phase 2 clinical trial of NT-I7 for non-small cell lung cancer. The company had received FDA approval for the trial in October 2020 but ultimately failed to recruit the planned 83 patients.
At the time, NeoImmuneTech said it would focus on areas where the drug’s strengths could be best demonstrated and accelerate development of its acute radiation syndrome and CAR-T combination programs.
In 2023, the company also decided to voluntarily discontinue clinical trials targeting three solid tumors, including glioblastoma and gastric and skin cancers. Another trial targeting high-risk skin cancer was also voluntarily withdrawn that year.
The latest licensing deal is therefore drawing attention because it represents a commercial milestone for NT-I7 after the company struggled to produce tangible results across several indications.
A NeoImmuneTech official said the thymus represents a new area for the company because it had not previously directly developed NT-I7 for thymic dysfunction. The company decided to pursue the new business opportunity through the licensing deal while taking an equity stake in Tolerance Bio.
