GSK Invests $1B for Exclusive ADC Drug License

GlaxoSmithKline (GSK) has established an exclusive licensing agreement with Eucure Biopharma, granting GSK the rights to develop and market the ADC drug DB-1324 worldwide, with the exception of mainland China, Hong Kong, and Macau. The agreement, valued at a substantial $1.005 billion, includes a $30 million upfront payment and up to $975 million in milestone-related fees. Additionally, GSK will provide tiered royalties based on global net sales. DB-1324, a novel ADC molecule stemming from Eucure Biopharma's DITAC platform, is in the preclinical phase and is anticipated to be utilized for treating gastrointestinal cancers. This transaction is a critical element of GSK's strategy in the ADC sector and underscores the growing international stature of Chinese biopharmaceutical firms in ADC research and development.

Another ADC drug in GSK's portfolio, Blenrep, previously secured breakthrough therapy designation and accelerated approval from the FDA. However, Blenrep was withdrawn from the U.S. market in December 2022 due to unsatisfactory clinical trial outcomes. Despite this setback, GSK has persisted in its efforts in other regions and is actively examining new clinical trial data with the aim of re-entering the market. In June 2024, GSK presented the results of the DREAMM-7 and DREAMM-8 Phase III trials at the ASCO conference. These studies demonstrated that Blenrep combination therapy significantly improved patients' progression-free survival and reduced the risk of disease progression or death. The positive results have led GSK to reapply for Blenrep's market approval.

Apart from Blenrep, GSK's ADC portfolio includes several other promising drugs. XMT-2056 is currently undergoing clinical research. Additionally, HS-20089 and HS-20093, which are being developed in partnership with Hanmi Pharmaceutical, are also in clinical trials. These collaborations, along with encouraging clinical trial outcomes, strengthen GSK's ADC product pipeline in cancer treatment and indicate a strong competitive position in the market. Through these initiatives, GSK aspires to achieve significant advancements in cancer therapy and provide patients with expanded treatment options.