APAC Focus: China ADC drugs - a rising force in cancer treatment

Emerging ADC drugs present substantial market potential globally
Antibody-drug conjugates (ADC) are a class of biological drugs for the treatment of tumours. These complex bioconjugates are composed of an antibody and a cytotoxic small molecule drug (payload), and are able to selectively deliver cytotoxic drug to cancer cells. Thus, ADCs are a type of targeted therapy leveraging on the precise targeting ability of antibodies as well as the tumour killing effect of cytotoxic payloads.

Are ADCs a promising therapeutic for China to race ahead of global competition?
We believe the emerging ADC drug class holds substantial market potential as it demonstrates superior efficacy and more manageable safety in cancer treatment than traditional chemotherapy. We think Chinese ADC companies are competitive in this field, as represented by China's leading position in terms of both size and phase of ADC pipeline, as well as their global recognition through a series of business development deals with overseas biopharma companies.

China is racing ahead of the global competition in ADC
Antibody-drug conjugate (ADC) is emerging as a promising novel class of cancer therapy. Compared with the contract research organisation (CRO) sector, we believe China appears even better positioned in ADC and we expect China to be a leading force in the global race:

1. China currently holds the largest share of the global ADC pipeline at over 42%;
2. China ADC candidates are well recognised by global companies, accounting for 40% of global ADC out-license deals 2023 YTD;
3. Favourable policies in China help to speed up ADC R&D and commercial progress; and
4. China has well developed outsourcing services to support the R&D of ADC.