Blockbuster Deals Resurge in ADC Space
Apr 17,2026
On April 7, Gilead announced the acquisition of Germany-based Tubulis for a total transaction value of $5 billion, including $3.15 billion upfront and up to $1.85 billion in potential additional payments. Through this acquisition, Gilead will gain Tubulis’ ADC pipeline — including TUB-040 targeting NaPi2b — and its proprietary Tubutecan technology platform.
Back in 2020, Gilead acquired Immunomedics for a massive $21 billion to secure the ADC drug Trodelvy, yet its subsequent performance fell short of expectations. Gilead’s renewed move underscores its determined commitment to the ADC sector.
To date, multinational pharmaceutical corporations (MNCs) have largely completed their ADC strategic deployments, with a relatively clear competitive landscape.
According to PharmCube statistics, 20 ADC drugs have been approved globally. Among the 10 products disclosing 2025 sales, aggregate revenue exceeded $16.8 billion. Frost & Sullivan projects the global ADC market will expand to $66.2 billion by 2030, leaving substantial room for growth over the next five years amid continued high-speed expansion.
Based on 2025 sales, the top 3 ADC products — Enhertu, Padcev, Kadcyla — collectively captured over 60% of the total market. Enhertu alone generated approximately $4.983 billion in annual sales, roughly 50% higher than second-place Padcev.
China is the world’s largest exporter of novel ADC assets. Over the past few years, MNCs have strategically locked in the ADC sector through large-scale acquisitions of Chinese assets, and the pecking order of domestic leaders has largely taken shape. A more pragmatic question has emerged:
What lies ahead for China’s ADC assets in their next phase?
01、The Global ADC Landscape Takes Shape
Nearly one in every two global ADC clinical trials is sponsored by a Chinese company.
Data from Evaluate shows that 51% of global ADC clinical trials originate from Chinese pharmaceutical firms. For several high-profile targets, Chinese-developed ADCs account for over 60% of global projects.
Chinese novel ADC assets have become a leading flagship for domestic innovative drugs going global.
The rise of China’s ADC sector has formed a mutually constructive dynamic with MNC strategy: MNCs secure positions in ADC via large-scale purchases of Chinese assets, while being selected by MNCs — and when — largely defines the standing of China’s ADC leaders.
Merck & Co. is among the most aggressive MNCs in ADC. In 2022, Merck completed three ADC deals with Kelun-Biotech, integrating 9 ADC pipelines for a total transaction value exceeding $11.8 billion. Its core asset, the TROP2 ADC sac-TMT (lukangsituzumab), has secured 4 domestic indications, with sales of approximately ¥302 million in the first half of 2025.
Merck’s aggressiveness stems deeply from the 2028 patent cliff facing its flagship product pembrolizumab (Keytruda). In 2025, Keytruda generated over $31.6 billion in annual sales — nearly half of Merck’s total revenue.
ADC is viewed by Merck as a strategic pillar to fill this growth gap. Marjorie Green, Global Head of Oncology Clinical Development at Merck, stated plainly:
“TROP-2 ADC is poised to become Merck’s core ‘anchor product’ after Keytruda’s patent expiration.”
Bristol Myers Squibb (BMS) is not far behind, securing a deal with China’s ADC rising star SyntheX Pharmaceuticals. In December 2023, BMS paid $1.3 billion in upfront and near-term payments for global rights to iza‑bren (BL‑B01D1, EGFR×HER3 bispecific ADC), with a total potential value of up to $8.4 billion — setting a global record for a single ADC out-licensing deal.
Roche, the original ADC leader, is also increasing allocations to Chinese assets. In January 2026, Yilin Bio entered an exclusive license agreement with Roche for YL201 (B7H3 ADC), receiving $570 million in upfront and near-term milestone payments.
Additionally, Pfizer acquired Seagen, thereby gaining rights to disitamab vedotin from RemeGen, which was licensed to Seagen in 2021.
According to the PharmCube NextPharma database, the world’s top 10 MNCs have completed approximately 20 ADC transactions with Chinese companies to date.
Over the past five years, China’s ADC sector has grown exponentially in pipeline quantity, deal value, and clinical progress. However, as leader effects emerge and the landscape stabilizes, the sector’s investment window is rapidly narrowing.
Overall, MNC selection of Chinese ADCs has shifted from “broad casting” to “careful selection”. Projects with differentiated clinical data, validated clinical advancement, or unique technology platforms can still command premium valuations, while pure me‑too molecules struggle to attract MNC interest.
02、2026: A Pivotal Year for “IO + ADC”
Although the transaction window is narrowing, ADC value realization is far from over. A larger battlefield is just opening up.
“IO + ADC” has become the widely recognized future backbone of oncology therapy, accelerating ADC penetration from later lines to frontline treatment. This shift expands ADC market potential from a niche late-line market to a large-scale frontline patient population.
A research report from Huafu Securities notes that 2026 will be a key catalytic year for IO‑ADC combinations. PD‑1/VEGF and PD‑L1/VEGF bispecific antibodies combined with ADCs, led by Chinese biotechs, have entered Phase I/II studies and are expected to launch global Phase III trials in 2026–2027, potentially establishing new frontline standards in certain cancers.
At the 2026 JPMorgan Healthcare Conference, leading oncology MNCs prioritized IO and ADC strategy, with multiple Chinese novel drugs featured prominently.
Lung cancer remains a fiercely contested arena. In first‑line NSCLC, in November 2025, Kelun-Biotech announced that sac-TMT plus Keytruda met its primary endpoint in a pre-specified PFS interim analysis of the Phase III OptiTROP‑Lung05 study in PD‑L1‑positive NSCLC, with an OS benefit trend observed. This marks the world’s first Phase III trial of a PD‑(L)1 + ADC combination to achieve a primary endpoint in first‑line NSCLC.
Merck has since initiated 16 global Phase III trials for sac-TMT across lung, breast, gastric, gynecologic, and other cancers.
The landscape for first‑line breast cancer is also crystallizing. In February 2026, Innovent Biologics announced the first patient dosed in the pivotal Phase III trial of its HER2 ADC IBI354 for first‑line HER2‑positive breast cancer. In the same month, Henlius announced the first patient dosed in a Phase II/III study combining its HER2 mAb HLX22 with HER2 ADC HLX87.
In triple‑negative breast cancer (TNBC), in February 2026, SyntheX announced that iza‑bren significantly prolonged PFS and OS in an interim analysis of its Phase III trial for locally advanced or metastatic TNBC, achieving dual primary endpoints. This is the world’s first bispecific ADC to report positive PFS/OS results in a Phase III TNBC study.
This means the frontline positioning window for major indications is closing rapidly. Once a Phase III establishes a new standard of care, later entrants must conduct head‑to‑head trials to prove superiority, with exponentially rising cost and time barriers.
From an investment perspective, the “golden window” for ADC allocation is indeed nearing its end. But this does not signal the end of opportunities — only a shift in their nature.
03、China’s ADC: Breaking New Battlefields
A notable trend is the growing diversity of ADC collaborations. Beyond traditional overseas R&D, manufacturing, and commercialization partnerships, platform technology licensing and combination therapy development are emerging.
The $13 billion partnership between QED Therapeutics and Biohaven in 2025 exemplifies this: it covers not only ADC assets but also technology platform licensing. This landmark event signals that overseas pharma now recognizes not just Chinese pipeline assets, but also Chinese technology platforms.
Accordingly, post‑window BD competition has evolved beyond individual molecules to systematic platform capability competition. Companies building integrated strengths in linkers, conjugation technology, toxin payloads, and other foundational technologies will command stronger bargaining power and deeper moats.
The core asset in Yilin Bio’s deal with Roche is its proprietary TMALIN platform, which enables extracellular cleavage in the tumor microenvironment, broadens antibody selection, and delivers a stronger bystander effect — the underlying technological value MNCs are willing to pay a premium for.
Technologically, bispecific ADCs and dual‑payload ADCs are becoming the next wave of focus.
Bispecific ADCs enhance tumor specificity and internalization by targeting two distinct tumor antigens or epitopes. SyntheX’s iza‑bren, the world’s first bispecific ADC to complete Phase III, serves as a benchmark. Alphamab’s JSKN‑003 (HER2 bispecific ADC) has demonstrated high response rates and favorable safety in clinical studies and has advanced to Phase III.
In dual‑payload ADCs, in 2025, Kanghong Pharmaceutical’s KH815 (TROP2‑targeted dual‑toxin ADC) received clinical approval in Australia and China, becoming the world’s first dual‑payload ADC to enter clinical development.
Meanwhile, ADC indications are expanding beyond oncology into broader disease areas. Ying’en Bio’s DB‑2304 (BDCA2 ADC) has initiated a Phase II trial for systemic lupus erythematosus, representing China’s most advanced and well‑defined ADC program in autoimmune diseases.
As platform capability and technological iteration become new competitive anchors, MNC screening standards are rising sharply. Today, MNCs prioritize head‑to‑head data and robust, reproducible results. Projects relying solely on “fast follow” pipeline stacking are no longer favored.
Going forward, China’s ADC global expansion will advance along two main tracks:
1、MNC‑Chinese partnerships already in place will release additional Phase III data, validating pipeline quality.
2、Early‑stage assets with differentiated platforms or novel targets may still attract targeted MNC acquisitions.
For Chinese ADC companies, the real test is no longer being seen, but playing an irreplaceable card at a largely set global table.
References：
1.China’s ADCs Blossom Globally; PharmCube
2.Blackstone’s Bet on Innovative Drugs; Amin observation
3.Chinese Innovative Drugs Going Global: From “Yearly Boom” to “Quarterly Surge”; Tongxieyi
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