During an interview at JPM2026, the Head of U.S. Business Development at Korean biotech company LigaChem summarized MNCs' current preferences for ADC assets into three distinct trends: clinical-stage assets, novel payloads, and new targets.

He particularly noted that large pharmaceutical companies no longer act merely because "data exists," but rather "calmly evaluate how overwhelming an asset’s advantages in efficacy or side effects are compared to other ADCs."

The shift in evaluation criteria from "availability" to "superiority" has pushed ADC competition into deeper waters. At the same time, the demand for novel targets has been placed on par with technological innovation, as "the ability to discover targets beyond the current limited set and create new markets has become crucial."

This strategic anxiety has opened doors for players capable of defining new targets. As the territory of established targets is carved up, participants have unanimously turned their attention to dormant treasures like B7-H3 and CDH17.

The biological importance of these targets has long been recognized, but they remained stagnant due to the challenges traditional drug forms like naked antibodies faced or the immaturity of development technologies. It was only with the emergence of ADC technology’s powerful "precision delivery" capabilities that they were truly awakened from theoretical concepts into viable therapeutic breakthroughs.

In the case of the B7-H3 target, the actions of Chinese trailblazers have resonated with the strategic needs of MNCs.

In January, Yilian Biotech licensed its B7-H3-targeting ADC drug, YL201, to Roche for an upfront payment and near-term milestone payments totaling up to $570 million.

This product had previously received Breakthrough Therapy designation from the U.S. FDA and three Orphan Drug designations, demonstrating potential in early clinical trials for refractory small cell lung cancer and nasopharyngeal carcinoma. Roche was attracted precisely by the "hard data" potential of this drug in areas with high unmet clinical needs.

Almost simultaneously, Innolake Biopharma also licensed its clinical-stage B7-H3 ADC drug, ILB-3101, to UK-based Ellipses Pharma.

The uniqueness of ILB-3101 lies in its use of the microtubule inhibitor eribulin as the payload, aimed at overcoming resistance potentially generated by current mainstream ADCs (such as those based on the topoisomerase I inhibitor Dxd). It has shown superior tumor-killing effects compared to control products in preclinical models.

These successive licensing deals have rapidly transformed B7-H3 from a promising biological concept into a globally popular track supported by clinical evidence and data. A similar narrative has unfolded for another target, CDH17, led by Chinese pharmaceutical companies, in an earlier and more strategic manner.

CDH17 is highly specifically expressed in gastrointestinal tumors such as gastric and colorectal cancers, with minimal expression in normal tissues, making it an ideal target for ADCs. It is also referred to within the industry as "the next Claudin18.2."

In October 2025, Hansoh Pharma licensed the global rights (excluding Greater China) of its CDH17 ADC project, HS-20110, to Roche for a total transaction value of up to $1.53 billion. Similar to the B7-H3 deal, Roche stepped in at a time when HS-20110 had already entered Phase I clinical trials simultaneously in China and the U.S.

In a similar vein, domestic pharmaceutical companies such as Biocytogen and Lepu Biopharma reached licensing agreements with foreign pharmaceutical companies for CDH17-related projects last year. Meanwhile, Mabwell Biopharma’s self-developed CDH17 ADC drug, 7MW4911, also received clinical trial approval from regulatory authorities in both China and the U.S.

When the value of the new channel is recognized, the core of competition quickly descends to the "shipyard" of shipbuilding, that is, the technological platform that determines the efficacy and differentiation of ADC drugs.

This is a battle about how to systematically overcome the impossible triangle of "efficacy, precision, and safety". The strategies of overseas biotech companies exhibit characteristics of high focus and differentiation.

Taking Sutro Biopharma, a star ADC company, as an example, it has clearly proposed a "dual-track parallel" strategy for the development of next-generation ADCs. On the one hand, it focuses on tackling complex targets expressed in various tumors through single-payload ADCs (such as STRO-004 targeting TF). On the other hand, it is betting on dual-payload ADCs (such as STRO-227 targeting PTK7) aimed at overcoming drug resistance. Its unique cell-free protein synthesis platform enables customized adjustment of the types and proportions of dual payloads.

Headquartered in Vancouver, Canada, Zymeworks' R&D pipeline resembles a "platform-based target menu", encompassing a series of targets such as FRα and GPC3, all utilizing optimized Topo1 inhibitor payloads, demonstrating its systematic capability to rapidly derive drugs targeting different targets from its platform.

Companies like ADC Therapeutics, on the other hand, have made more pragmatic strategic choices during the industry adjustment period: they have decisively scaled back their early-stage solid tumor pipelines and focused all resources on core assets nearing commercialization, such as the approved products ZYNLONTA and PSMA-ADC. By deeply focusing on these assets, they aim to ensure the ultimate success of their core platform.

Facing the advancements made by overseas competitors in specific technological paths, Chinese pharmaceutical companies are not willing to fall behind.

During JPM2026, ShunJing Pharmaceutical officially unveiled its proprietary SG Linker-Payload technology platform.

The core innovation of this platform lies in its unique high hydrophilicity design, which aims to address the bottleneck issues of traditional ADCs caused by the hydrophobicity of toxins, such as aggregation, poor stability, and high toxicity, at the molecular level. ADCs constructed based on this platform have achieved a "higher efficacy with the same dose" antitumor effect in animal models, with some tumor growth inhibition rates increasing by more than 30%.

Ying'en Biotech has established a matrix of four major technology platforms, including DITAC, DIBAC, DIMAC, and DUPAC.

Among them, the DIBAC bispecific ADC platform is one of the few ADC platforms globally capable of bispecific antibody conjugation, with its core advantage lying in stronger tumor targeting and synergistic anticancer capabilities. The DUPAC platform, on the other hand, breaks away from the traditional scope of cytotoxic agents, exploring a novel mechanism of action involving protein degradation, thus opening up a new technological track.

In this arms race of underlying technologies, global R&D and production platforms represented by WuXi Biologics have become "super arms factories" that empower both sides.

Whether it's Sutro's complex bispecific ADC or the innovative bispecific ADCs from Chinese pharmaceutical companies, the transformation from design blueprint to high-quality product heavily relies on the exceptional capabilities of such platforms in complex biologics process development, large-scale production, and global quality systems.

Therefore, the outcome of the platform war lies not only in the imagination of front-end design, but also in the ability to transform imagination into real products on the back end, coupled with a global industrial support system.

The story of ADC is rapidly evolving from a chapter of technological innovation into a grand narrative that reshapes the global pharmaceutical industry landscape. Its driving force not only stems from science, but also from the gravitational force formed by the intertwining of severe business realities and vast market prospects.

According to industry analysis, the global ADC market has surpassed $20 billion in 2025 and is expected to exceed $60 billion by 2030, demonstrating strong and sustained expansion momentum. However, alongside this promising outlook, MNCs are facing the imminent challenge of the "patent cliff". Over the next four years, it is estimated that up to $47 billion in global pharmaceutical revenue will be at risk due to patent expiration.

The huge demand has given birth to an active BD market, and MNCs' screening criteria are becoming increasingly stringent. They particularly favor assets that are in the clinical stage and possess novel payloads or act on novel targets. This shift in thinking from "filling the short board" to "building a high wall" has elevated global ADC BD activities from mere pipeline filling to a bet on future core competitiveness.

It is in this round of global strategic sourcing that Chinese innovative pharmaceutical companies have grown from regional players to indispensable value providers.

When elaborating on the company's future strategy, the CEO of Merck & Co. repeatedly mentioned the TROP2 ADC drug SKB264 (MK-2870) from Cornbelt. This drug has become one of Merck's core assets to address the patent cliff of "K drug", and is currently undergoing more than ten registrational clinical studies globally. Similarly, Regeneron views the GLP-1R/GIP dual-target agonist from Hansoh Pharma as the cornerstone for its entry into the multi-billion-dollar metabolic disease market.

The depth and mode of cooperation have also undergone fundamental changes.

Takeda Pharmaceuticals has made a down payment of up to $1.2 billion to Innovent Biologics, accelerating the global development and commercialization of Innovent's next-generation immuno-oncology (IO) and ADC therapies. The collaboration encompasses global rights to IBI363 (PD-1/IL-2α-bias) and IBI343 (CLDN18.2 ADC), as well as options for the early-stage project IBI3001 (EGFR/B7H3 ADC).

Through its collaboration with NextCure, Simcere Pharmaceutical Group not only licensed the CDH6-targeted ADC drug SIM0505, but also provided its proprietary linker and payload technology, achieving a leap from "product export" to "technology export".

The innovative achievements of Chinese pharmaceutical companies are being introduced into the global market through MNC channels; MNCs, in turn, are laying the foundation for their sustained leadership in the post-patent cliff era by binding these cutting-edge sources. The relationship between the two parties is no longer a simple transaction, but a "coexistence" based on complementary advantages.

For China's biopharmaceutical industry, we are witnessing a transformation from "apprentice" to "partner" and then to "ecological architect". The winter in San Francisco is witnessing a new chapter in the global ADC industry landscape.