China-based Contract Research and Development Organization (CRDMO) WuXi Biologics (HKG: 2269) has announced a strategic licensing agreement with compatriot firm Hangzhou DAC Biotechnology Co., Ltd, an antibody drug conjugate (ADC) specialist, and US-based Aadi Bioscience, Inc. (NASDAQ: AADI). The deal grants Aadi Bio global d2018evelopment and commercialization rights to a three-asset portfolio of preclinical ADCs.
Financial Terms of the Licensing Agreement
Under the terms of the agreement, Aadi will pay an aggregate of USD 44 million upfront for the in-licensing ADC programs. This significant upfront investment underscores the confidence in the potential of the preclinical assets. Furthermore, Aadi is obligated to pay cumulative development milestone payments of up to USD 265 million, cumulative commercial milestone payments of up to USD 540 million, and single-digit royalties on sales, reflecting the long-term commitment and expected commercial success of the ADC portfolio.
Implications for the ADC Landscape and WuXi Biologics’ Strategic Positioning
This licensing agreement represents a significant step forward for WuXi Biologics in expanding its strategic partnerships and securing a strong position in the ADC landscape. By partnering with both Hangzhou DAC and Aadi Bioscience, WuXi Biologics is set to benefit from the combined expertise and global reach of these companies, potentially leading to innovative treatments and significant advancements in the field of antibody drug conjugates.-Fineline Info & Tech
