①Wuxi XDC announced today that it has reached a licensing agreement with an AI-driven biotechnology company to accelerate the development of next-generation ADC drugs. ②The total potential transaction value of this collaboration is expected to exceed 800 million US dollars, but notably, the upfront payment amount was not disclosed in this deal. ③Data shows that since the beginning of this year, the total value of China's innovative drug BD transactions has surpassed 50 billion US dollars.
Cailian Press, February 27th, by reporter He Fan: To accelerate the development of next-generation ADC drugs, Wuxi XDC (02268.HK) has reached a licensing agreement with an AI-driven biotechnology company. The total potential transaction value of this collaboration is expected to exceed 800 million US dollars, but notably, the upfront payment amount was not disclosed in this deal. Data shows that since the beginning of this year, the total value of China's innovative drug BD transactions has surpassed 50 billion US dollars.
Wuxi XDC officially announced today that it has entered into a strategic partnership with Earendil Labs for the licensing of its self-developed WuXiTecan-2 payload-linker technology. According to the agreement, Wuxi XDC will grant Earendil Labs exclusive global development rights for multiple specific target ADC drug candidates using its self-developed “WuXiTecan-2 payload-linker technology.” Earendil Labs will combine this technology with bispecific antibodies discovered through its proprietary AI platform to advance the development of corresponding target ADC drug candidates. The total potential transaction value of this collaboration could reach approximately 885 million US dollars, including upfront payments, several research and development, regulatory, and sales milestone payments. After the collaborative ADC drug candidates are marketed, Wuxi XDC will also be entitled to royalties based on a percentage of net sales. The purpose of this collaboration is to integrate Wuxi XDC’s ADC technology platform with Earendil Labs’ AI-driven antibody discovery capabilities to accelerate the development of next-generation ADC drugs.
It is reported that Earendil Labs is an AI-driven biotechnology company focused on developing next-generation innovative biopharmaceuticals for the treatment of autoimmune diseases, cancer, and other therapeutic areas. By integrating machine learning, generative protein engineering, and high-throughput experimental technologies, Earendil Labs and its affiliate Helixon optimize the drug discovery and research process to accelerate drug development. The company’s integrated platform can enhance the functionality, manufacturability, and developability of protein-based biologics, making them potential first-in-class and/or best-in-class drugs.
Li Jincai, CEO of Wuxi XDC, stated in the company’s official WeChat post: “Earendil Labs has generated differentiated bispecific antibodies using its unique AI platform. When combined with our WuXiTecan-2 payload-linker technology, it holds the potential to develop more effective and safer next-generation ADC drugs.”
ADC drugs combine the precise targeting properties of antibody drugs with the potent cytotoxicity of small-molecule drugs. According to Frost & Sullivan (Sullivan), China and the United States represent the largest and fastest-growing ADC markets, with the global ADC market projected to reach 115.1 billion US dollars by 2032, growing at a compound annual growth rate (CAGR) of 30.6% from 2023 to 2032. Just last month, Wuxi XDC acquired TOT Biopharm at a high premium to strengthen its production capacity and market position in the ADC field. Concurrently with the announcement of its intention to acquire TOT Biopharm shares, Wuxi XDC also issued a positive profit forecast, expecting revenue to grow by over 45% year-over-year in 2025 and gross profit to increase by over 70% year-over-year.
From the perspective of the secondary market, capital has already responded in advance. As of today’s close, Wuxi XDC rose by over 8%, with its stock price at 63.15 Hong Kong dollars per share. Additionally, several Hong Kong-listed CXO concept stocks performed actively, with Wuxi Bio (02269.HK) rising by over 5%, Wuxi Apptec (02359.HK) increasing by over 3%, and Kanglong Huacheng (03759.HK) gaining nearly 3%.
According to the PharmaCube NextPharma database, as of February 25th, there have been 44 BD events involving China's innovative drugs this year, with upfront payments totaling approximately 3.123 billion US dollars and the overall transaction amount reaching 53.276 billion US dollars.
