Leon ‘Jun’ T.: A few interesting observations from the top 25 antibody drug conjugates bone marrow deals
Leon ‘Jun’ T., Advisor at Mianus Capital, shared on LinkedIn:
“Updated on 2023-11-10 by adding one missed deal. Please refer to the updated chart here.
To prepare Bioverse Webinar EP003, I analyzed the top 25 ADC Business Development deals measured by upfront payment in 2022 and 2023. The analysis only used public information and excluded M&A deals such as the Seagen/Pfizer deal.
By the way, 5.5k+ people around the world joined Bioverse Webinar EP003, LIVE! If you missed it, you can watch the replay here.
A few interesting observations from the top 25 ADC BD deals:
Biopharma from the US and Europe are the primary buyers, accounting for 84% of the deals.
AsianBiotech(s) dominate the seller side, accounting for 52% of deals and a whopping 90% of the total upfront payment, largely due to the $4Bb upfront of the Daiichi Sankyo, Inc./Merck deal. Furthermore, Asian Biotech(s) account for 7 out of the top 10 deals.
Excluding the Daiichi/Merck megadeal, China Biotech(s) account for 50% of deals and 65% of total upfront payments.
Here are my quick thoughts based on these observations:
The industrial and academic excellence of East Asian countries in Chemistry and MaterialScience likely plays a crucial role – These East Asian countries together are making the best Semiconductor chips and Electric Vehicle battery, boasting some of the best biopharmaceutical CRDMO, and publishing the largest portion of prestigious Academic Papers in these disciplines in the world according to Nature Index.
Asian Biotech(s) are catching up with the Western peers on the innovation front at a breathtaking speed, and they might have well surpassed their Western ones in ADC space.
Western biopharma(s) have the deepest pockets and clear advantage in late-stage Clinical Development and global commercialization, which make the collaboration between Asian Biotech and Western biopharma an ideal pair in terms of ROI and R&D efficiency.
None of the exciting ADC assets of Merck, AstraZeneca, and Pfizer originates from their internal R&D, and they have bought themselves into the frontline of current ADC race. Conversely, the long-time ADC biopharma(s) such as Roche and AbbVie are absent from the current ADC ShoppingSpree and seem to focus on their internal programs.
Between external R&D and internal R&D, which one is more efficient and successful in the ADC race? Only time can tell.”
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Source: Leon ‘Jun’ T./LinkedIn