Deal-making by the large pharma companies in antibody drug conjugates (ADCs) to build their in product portfolios in oncology has been on the upsurge, but will the ADC wave continue in 2025? A look at recent deals and what may lie ahead.   

Bio/pharma majors ramp up positions in ADCs
Market interest in antibody drug conjugates (ADCs) is strong as both large and smaller bio/pharmaceutical candidates advance their pipelines in this area with oncology being the leading therapeutic area driving growth. Pfizer’s $43-billion acquisition in 2023 of Seagen, a Bothell, Washington-based bio/pharmaceutical company specializing in ADCs was a recent high mark in ADC-based deals, but ADCs continue to be a strong area of focus by bio/pharma companies in deal-making and in advancing their pipelines, with some notable deals this month (January 2025) and last year.

Earlier this month (January 2025), Boehringer Ingelheim (BI) inked a deal worth up to $1.3 billion with Synaffix, an Oss, the Netherlands-based ADC technology company and a subsidiary of Lonza, under which BI has licensed Synaffix’s ADC technology, which includes payload and site-specific linker technologies, Lonza acquired Synafixx in 2023. Synaffix has developed a clinically validated ADC platform technology that uses an enzymatic modification of native glycan anchor points on antibodies to enable the development of ADCs and bispecifics. BI plans to apply the technology to address tumor targets from its portfolio to develop cancer treatments. Under the agreement, Synaffix will provide access to its proprietary ADC technologies for an agreed but undisclosed number of targets. The first target was nominated upon signature of the deal, and additional targets will subsequently be nominated within a predefined timeframe. In addition to the upfront payment, Synaffix is eligible to receive potential additional milestone payments of up to $1.3 billion, plus additional royalty payments on net sales of resulting products.

Also, this month (January 2025), Roche and Innovent Biologics, a Shanghai-based bio/pharmaceutical company, entered an agreement to advance the development of Innovent’s IBI3009, an oncology ADC candidate, in a deal worth up to $1.08 billion ($80 million upfront and $1 billion in milestone payments).  IBI3009 has obtained investigational new drug (IND) approvals in Australia, China, and the US, with the first patient for the Phase I study dosed in December 2024. This collaboration is focused on developing treatments for advanced small cell lung cancer. Under the agreement, Innovent has granted Roche exclusive global rights to develop, manufacture, and commercialize IBI3009. The two parties will jointly focus on the early-stage development of this ADC candidate, after which Roche will take over full development. Innovent will receive an upfront payment of $80 million and is eligible to receive up to $1 billion in development and commercial milestone payments, along with tiered royalties on net sales.

There were also several large ADCs deals in 2024 from the bio/pharma majors, including AbbVie’s $10.1-billion acquisition of Immunogen, a Waltham, Massachusetts-based bio/pharmaceutical company. With the acquisition, which was completed last June (June 2024), AbbVie gained Immunogen’s Elahere (mirvetuximab soravtansine-gynx), an ADC for treating platinum-resistant ovarian cancer. ImmunoGen’s pipeline includes other ADCs: a Phase I asset, IMGN-151, an anti-FRα ADC for ovarian cancer with the potential for expansion into other solid tumor indications. Pivekimab sunirine, currently in Phase II development, is an anti-CD123 ADC targeting blastic plasmacytoid dendritic cell neoplasm (BPDCN), a rare blood cancer, which was granted FDA breakthrough therapy designation for treating relapsed/refractory BPDCN.

Last April (April 2024), Merck KGaA and Caris Discovery, the therapeutic research arm of Caris Life Sciences, an Irving, Texas-based bio/pharmaceutical company, formed a multi-year strategic partnership to accelerate the discovery and development of ADCs for treating cancer, in a deal worth up to $1.4 billion. Caris Discovery applies the scale of Caris’ core molecular-profiling business to discover druggable targets that would be otherwise inaccessible through more traditional approaches. Under the agreement, Merck KGaA providedCaris with an upfront payment as well as research funding. In addition, Caris will be eligible for discovery, development, regulatory and sales-based milestone payments that may total up to $1.4 billion along with tiered royalties. Merck KGaA will receive an exclusive global license to develop, manufacture, and commercialize ADC therapeutics for selected targets.

Other key deals in 2024 include Johnson & Johnson’s $2-billion acquisition of Ambrx Biopharma, a San Diego-based bio/pharmaceutical company, which is advancing a portfolio of clinical and preclinical ADC programs in multiple cancer indications, including: ARX517 for treating prostate cancer; ARX788 for treating breast cancer; and ARX305, for treating renal-cell carcinoma. Other recent large deals is Merck & Co.’s and Daiichi Sanyko’s $22-billion global licensing and commercialization pact for three ADC candidates, announced in October 2023, and Daiichi Sankyo’s $6-billion partnership with AstraZeneca in ADCs, announced in 2019/2020, which includes the blockbuster ADC arising from that alliance, Enhertu (trastuzumab deruxtecan) for treating certain forms of breast cancer, stomach cancer, and other solid tumors, and datopotamab deruxtecanon, an ADC for treating certain forms of non-small cell lung cancer for which the companies submitted a biologics license application to the US Food and Drug Administration last November (November 2024).

To support its ADC portfolio, AstraZeneca broke ground in November (November 2024) on a new $1.5-billion manufacturing facility in Singapore for ADCs, which will be the company’s first end-to-end ADC production site at a commercial scale. The company plans to hire over 800 employees to support the facility in roles ranging from engineering, quality, technical services to global supply chain. The facility is  targeted to be operationally ready in 2029.

Contract ADC market strong
With increased interest in ADCs by pharma companies, the global ADC contract manufacturing market is also strong. It was estimated at $1.79 billion in 2024 and is expected to grow at a compound annual growth rate of 13% to reach approximately $6.87 billion by 2035, according to a recent market study by Root Analysis, a business research and consulting firm serving the bio/pharmaceutical industry. Based on process component, the contract ADC market is divided into four major segments: the antibody, the highly potent active pharmaceutical ingredient (HPAPI)/cytotoxic payload, the conjugation/linker, and the fill–finish of the final drug product. The antibody component of the market represents the largest share, accounting for approximately 40% of the contract ADC market, followed by the conjugation/linker segment at 30%, the HPAPI/cytotoxic payload segment at 20%, and the fill–finish segment at 10%.