Biotech
Monday, January 15th, 2024 4:06 pm EDT
Key Points
- The JPMorgan Healthcare Conference highlighted the booming market for cancer drugs, particularly antibody-drug conjugates (ADCs), in 2023, with pharmaceutical giants such as Johnson & Johnson, Pfizer, and Merck making significant investments in this area.
- ADCs, which deliver targeted cancer therapy while minimizing damage to healthy cells, have gained widespread attention and support in the pharmaceutical industry. The $2 billion acquisition of ADC-developer Ambrx Biopharma by Johnson & Johnson signifies a growing interest in this field, with expectations of a potential “new era” in cancer treatment.
- Factors driving the popularity of ADCs include increased confidence in ADC technology, the potential for longer market exclusivity, and the emergence of attractive ADCs from Asian drugmakers. Analysts predict substantial profits, with ADCs potentially accounting for $31 billion of the $375 billion worldwide cancer market in 2028. The market for ADCs was estimated to be around $9.7 billion in 2023.
The JPMorgan Healthcare Conference in San Francisco highlighted the burgeoning interest in antibody-drug conjugates (ADCs) within the biotech and pharmaceutical industry. ADCs, which deliver targeted cancer therapies, gained significant attention during the event, with companies like Johnson & Johnson investing $2 billion in acquiring ADC-developer Ambrx Biopharma. The enthusiasm for ADCs is expected to continue into the next year, driven by increased confidence in ADC technology, potential longer market exclusivity, and the rise of attractive ADCs from Asian drugmakers. Analysts anticipate a continuation of the momentum from 2023, with ADCs projected to account for a substantial share of the global cancer market, reaching an estimated $31 billion by 2028. While ADCs are not new, recent innovations in technology and improved safety and efficacy have fueled a surge in approvals and acquisitions. Key developments include AstraZeneca and Daiichi Sankyo’s Enhertu, representing a new generation of ADCs with broader treatment capabilities. Despite some drawbacks, such as potential resistance and occasional trial setbacks, the complexity of ADC technology has become a motivator for investments. International collaboration is increasing, with U.S. and U.K.-based companies entering licensing agreements with Asian counterparts. The high list prices of ADCs, along with their potential to draw substantial profits, make them an attractive option for pharmaceutical companies. Merck and Pfizer, among others, are betting on ADCs to drive significant growth in their cancer drug portfolios, with Merck expecting $20 billion in new cancer drug sales by the early to mid-2030s. The recent acquisition of ADC-developer Seagen is set to restore investor confidence in Pfizer, positioning the company as a leader in cancer treatment. Overall, the growing interest in ADCs suggests a transformative phase in cancer treatment, marked by innovative technologies and strategic investments by pharmaceutical giants.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/14/cancer-drugs-renewed-interest-in-adcs-will-continue-in-2024.html
