JW Financial News | Pu Yin International released research reports pointing out that Antibody-drug conjugate (ADC) is a hot area in tumor drug research and development in recent years. According to Frost & Sullivan's forecast, the global ADC market is expected to grow rapidly from $7.9 billion in 2022 to $64.7 billion in 2030 (corresponding to a 30% CAGR). The China ADC market is expected to increase from 0.8 billion yuan in 2022 to 66.2 billion yuan in 2030 (corresponding to a 73% CAGR). The bank continues to point out that China has become a core participant in global ADC research and development, with domestic ADC new drugs accounting for approximately 40% of the global pipeline, highlighting overseas partners' recognition of domestic ADC products.

The bank believes that the following three types of players are expected to become industry leaders and continue to benefit from the ADC wave:

1) Companies with a strong ADC technology platform, who have accumulated years of rich experience in ADC technology research and development, and have developed differentiated ADC drugs, such as the leading ADC Biotech, Kangbo Tai.
2) Innovative major pharmaceutical companies with strong research and development capabilities, unique ADC technology platforms, a range of differentiated ADC clinical drugs, and strong commercialization capabilities, such as Jiangsu Hengrui Pharmaceuticals.
3) Companies with comprehensive and rich technical capabilities, global leading ADC outsourcing service companies, such as Wuxi XDC.

First coverage of Kangbo Tai Biology (06990), Jiangsu Hengrui Pharmaceuticals (600276), Wuxi XDC (02268), all rated as 'buy', with target prices of HKD 230, RMB 61, and HKD 35 respectively.