Valuing ADC licensing deals

AZ and Daiichi’s datopotamab deruxtecan data marks the latest readout of the value emerging from ADC licensing and partnering deals made since 2020. A pair of recent preclinical deals suggest the modality’s forward momentum is buoying upfront payments for next-generation ADC cancer therapies.

The ADC space has seen a series of high-profile company acquisitions and licensing deals, including the 2019 partnership between AstraZeneca plc (LSE:AZN; NASDAQ:AZN) and  Daiichi Sankyo Co. Ltd. (Tokyo:4568) for the now standard-setting Enhertu fam-trastuzumab deruxtecan-nxki, then in Phase III testing, which brought Daiichi $1.4 billion up front and eligibility for $5.5 billion in milestones...