Another Chinese-developed ADC Drug Goes Global with Exclusive Licensing Deal with GSK

　　【Pharmaceutical Network Enterprise News] China has become a core participant in global ADC drug research and development, with multiple licensing deals for domestically produced ADC drugs continuously being reached. Recently, another licensing deal has been achieved in the field of domestically produced ADC drugs.
 

It is reported that on December 4, 2024, DualityBio announced an exclusive licensing agreement with GSK (GlaxoSmithKline) for an ADC drug (DB-1324). Under the terms of the agreement, GSK will make an upfront payment of $30 million and other pre-option milestone payments to obtain an exclusive license to advance the research, development, and commercialization of DB-1324 worldwide (excluding mainland China, Hong Kong, and Macao).
 

If GSK exercises the license rights, DualityBio will receive an exercise fee along with subsequent milestone payments at different stages of development, regulatory registration, and commercialization, which could reach up to $975 million. After successful commercialization, GSK will pay tiered royalties on global net sales (excluding mainland China, Hong Kong, and Macao), and will also receive royalties from net sales in mainland China, Hong Kong, and Macao.
 

DualityBio stated that DB-1324, the subject of an exclusive cooperation agreement with GSK, is an innovative ADC molecule currently in the preclinical development stage. Its research focus may be on gastrointestinal cancers. The ADC drug has the potential to be used in combination with multiple GSK oncology products, strategically complementing GSK's oncology portfolio.
 

It is reported that GSK has laid out multiple ADC drugs in the field of oncology. In the area of solid tumors, GSK's strategy is to quickly build an ADC pipeline through licensing-in, successively introducing the HER2 ADC drug XMT-2056, the B7-H4 ADC drug HS-20089, and the B7-H3 ADC drug HS-20093 from Mersana and Hansoh Pharma.
 

DualityBio is a clinical-stage biotechnology company focused on developing next-generation ADC therapies for patients with cancer and autoimmune diseases. Advances in synthetic biochemistry approaches, linker technologies, and novel payloads have paved the way for constructing next-generation ADCs, which are expected to optimize the activity and toxicity profiles of earlier-generation ADC candidates. Industry experts note that DualityBio is a major player in licensing partnerships. In addition to this recent deal, DualityBio has previously reached collaboration and licensing agreements with companies such as BioNTech, BeiGene, and Adcendo to co-develop various ADC products in its pipeline. According to DualityBio's Hong Kong Stock Exchange prospectus disclosed in August this year, the total value of related transactions exceeds $40 billion.
 

Other experts pointed out that the frequent selection of product pipelines reflects the platform technology capabilities of enterprises. It is reported that in recent years, the development of innovative drugs in China has made significant breakthroughs, especially in the ADC field, where China's R&D strength is impressive. Data shows that the total value of overseas licensing cooperation deals for Chinese ADCs exceeding 1 billion US dollars has occurred more than 11 times.
 

Analysts pointed out that ADC, as an emerging class of macromolecular targeted drugs, has shown great potential in the field of cancer treatment. Data predicts that by 2030, the global ADC market size is expected to reach 64.7 billion US dollars, and the ADC market in China is expected to reach 66.2 billion RMB. Facing the broad market prospects, companies both in and outside of China are actively increasing their investments.
 

Disclaimer: In any case, the information or opinions expressed in this article do not constitute investment advice to any person.