Billions-USD ADC Oncology Market Welcomes New Entrants; Pharma Firms Eye Diversified Payment Models to Enhance Accessibility

China's ADC (Antibody-Drug Conjugate) Field Welcomes Another Major Player!

Recently, GSK China announced that its injectable Marabrant monoclonal antibody (brand name: Belanty) in combination with bortezomib and dexamethasone (BVd) is approved for the treatment of adult patients with multiple myeloma who have received at least one prior therapy. This drug is currently the only anti-B-cell maturation antigen (BCMA) ADC drug approved for the treatment of multiple myeloma, meeting diverse patient needs across various treatment settings through a 30-minute outpatient infusion.

ADC is a targeted cancer therapy that combines the targeting ability of monoclonal antibodies with the cytotoxic potency of cell toxins, and the industry refers to it as a "magic bullet."Shanxi SecuritiesThe research report points out that, thanks to the expansion of ADC indications in solid tumors and hematological malignancies, the global ADC market is experiencing explosive growth. The global market size surged from $28 billion in 2019 to $141 billion in 2024 and is expected to exceed $1227 billion by 2035.

In addition to GSK, ADC drugs from multiple multinational pharmaceutical companies have been approved in China. For instance, on April 22, the second ADC drug developed and introduced to China through the collaboration between AstraZeneca and Daiichi Sankyo, Dato-Dxd (brand name: Dazhuo You), officially launched in China. The first batch of supplies has gradually been distributed and activated in hospitals and pharmacies across the country. Earlier, Enhertu, another collaboration between AstraZeneca and Daiichi Sankyo, was also launched in China. According to information released by AstraZeneca China at the end of March, this drug already has seven indications approved in China.

In China, pharmaceutical companiesRemeGen(688331.SH; 9995.HK) RemeGen's Disitamab Vedotin is the first China-produced ADC new drug approved for marketing in China. On April 10, RemeGen announced that a new indication of the drug had been officially approved for marketing by the National Medical Products Administration (NMPA). Its therapeutic scope has successfully expanded from later-line to front-line treatment, making it the world’s first HER2-ADC drug approved for first-line treatment of advanced urothelial carcinoma.

More ADC new drugs made in China are still in the research and development stage, but have already gained global attention through BD. In December 2023,Biokin(688506.SH; 2615.HK) has reached a collaboration with Bristol-Myers Squibb (BMS) on the BL-B01D1 project, with an upfront payment of $800 million and a potential total transaction value of $8.4 billion, setting a new record for China's innovative drug exports. BL-B01D1 is an investigational EGFR×HER3 bispecific antibody-drug conjugate (ADC) product.

Also in 2023, GSK China joined hands with Hansoh Pharma (3692.HK) to reach an exclusive licensing agreement for HS-20093, an ADC new drug independently developed by Hansoh Pharma. Earlier, the two companies also established a strategic cooperation for another ADC new drug, HS-20089, mainly to explore its potential in gynecological cancers such as ovarian cancer and endometrial cancer.

Regarding GSK's multiple large BD deals in China, Zhang Ning, Vice President of GSK and Head of the China Specialty Medicines Business Unit, stated that open collaboration is at the core of GSK's strategy in China. Many disclosed partnerships demonstrate GSK’s commitment to seeking high-quality innovative assets in China. In the long term, GSK aims to leverage China as a strategic key market, focus on China’s biopharmaceutical innovation capabilities, and channel more of China’s potential into GSK’s global operations.

For a newly approved anticancer drug, how to improve its accessibility is the top priority. Currently, GSK has not disclosed the specific price of Mabalantinib. Zhang Ning told reporters: "The dosage and administration regimen of Mabalantinib are scientifically reasonable, in line with the considerations for medical insurance reimbursement, providing a solid foundation for inclusion in the National Medical Insurance Drug List. Meanwhile, we also hope to establish a diversified payment system to enhance the affordability of the drug."

On the evening of May 9, the National Healthcare Security Administration released the "Work Plan for the Adjustment of the 2026 National Basic Medical Insurance, Maternity Insurance, and Work-related Injury Insurance Drug Directory and the Innovative Drug Directory for Commercial Health Insurance (Draft for Soliciting Opinions)." This marks the start of the annual adjustment work for the medical insurance drug directory.

Xiangcai Securities research report points out that compared with previous years, the 2026 National Medical Insurance Directory adjustment plan has made significant optimizations in multiple dimensions, aiming to build a more efficient, precise, and forward-looking drug access and payment system. This includes a more flexible and efficient application process, more inclusive and accurate access conditions, continuously refined and scientific management rules, and for the first time, the simultaneous adjustment of the commercial health insurance innovative drug directory. This marks the beginning of a systematic effort in China to construct a multi-level payment system that complements basic medical insurance with commercial insurance, providing new payment options for high-value innovative drugs, which is a key institutional innovation to support industry innovation.

Zhang Ning emphasized in the interview that GSK China's goal is to respond to the national call through diversified strategies, including medical insurance and innovative payment systems, to better reduce the burden on patients and improve drug accessibility. Medical insurance is an important direction, and in the future, more efforts will be made to explore innovative payment methods and people-oriented policies to ensure that patients can access and afford the medications they need.

Chief Reporter of The Paper Li Xiaoxiao