GSK Invests $1 Billion for Exclusive License of ADC Drug DB-1324

GlaxoSmithKline (GSK) has signed an exclusive licensing agreement with Eucure Biopharma, under which GSK acquires the rights to develop and commercialize the ADC drug DB-1324 globally, excluding mainland China, Hong Kong, and Macau. The total amount of the deal reaches an impressive $1.005 billion. DB-1324, an innovative ADC molecule developed based on Eucure Biopharma's DITAC platform, is currently in the preclinical stage and is expected to be used for treating gastrointestinal cancers. GSK will pay a $30 million upfront fee and up to $975 million in additional payments upon reaching specific milestones. Additionally, GSK will pay tiered royalties based on global net sales. This transaction is significant for GSK's strategic layout in the ADC field and further proves the international recognition of Chinese biopharmaceutical companies in ADC R&D.

It is noteworthy that GSK’s other ADC drug, Blenrep, received breakthrough therapy designation and accelerated approval from the FDA but was withdrawn from the U.S. market in December 2022 due to disappointing clinical trial results. Despite setbacks in the U.S. market, GSK has not abandoned its efforts in other regions and is exploring new clinical trial data to hopefully re-enter the market. In June 2024, GSK announced the results of the DREAMM-7 and DREAMM-8 Phase III trials at the ASCO conference, showing that Blenrep combination therapy significantly extended patients' progression-free survival and reduced the risk of disease progression or death. These positive trial results prompted GSK to resubmit its application for Blenrep's market approval.

In addition to Blenrep, GSK's ADC portfolio includes several other drugs. For instance, XMT-2056 is currently in clinical research, while HS-20089 and HS-20093, developed in collaboration with Hanmi Pharmaceutical, are also undergoing clinical trials. These collaborations and positive clinical trial results not only strengthen GSK's ADC product line in cancer treatment but also indicate a favorable position in market competition. Through these efforts, GSK aims to achieve greater breakthroughs in cancer treatment and provide patients with more treatment options.