Market Challenges And Opportunities

Global Antibody Drug Conjugates Market - Drivers

Increasing inorganic growth strategies: An increase in the number of inorganic growth strategies, such as collaboration, adopted by key market players is anticipated to promote market development over the forecasted period. For instance, in July 2022, AstraZeneca, a multinational pharmaceutical and biotechnology company, announced that it had entered into a new global development and commercialization agreement with Daiichi Sankyo Company, Limited, a pharmaceutical company, for DS-1062, Daiichi Sankyo’s proprietary trophoblast cell-surface antigen 2 (TROP2)-directed Antibody Drug Conjugate (ADC), and a potential new medicine for the treatment of multiple tumor types.

Investments by key market players to expand their current manufacturing capacities: The demand for ADCs is anticipated to increase over the forecasted period. Hence, to support the growing demand, contract development and manufacturing organizations (CDMOs) are investing heavily to expand their production capacity for ADCs. Such initiatives are expected to drive market growth over the analysis period. For instance, in March 2022, Novasep, a leading provider of services and technologies to the life sciences industry, announced a US$ 5.5 million (€5.1 million) investment to expand its production capacity for Highly Potent Active Pharmaceutical Ingredients (HPAPIs) at its Le Mans site, France, in order to maintain the site's steady growth and strengthen Novasep's position as a leading Contract Development and Manufacturing Organization (CDMO) in the manufacture of innovative and targeted molecules for cancer treatment. The Novasep Le Mans site has more than 15 years of experience in the field of ADCs and is known for its expertise in offering integrated solutions to produce ADC payloads and bioconjugation.

Global Antibody Drug Conjugates Market: Key Trends

Funds raised by startups for development of potential ADC candidates: ADC have gained significant traction in recent years, and more players are entering the market; however, some lack financial capital to develop their robust pipeline of ADC. This has encouraged startups to raise funds through financing round; such initiatives are anticipated to support the development of the ADC market over the projected period. For instance, on April 13, 2023, Novo Holdings A/S, a leading international life sciences investor, announced a new investment in Alentis Therapeutics AG, a clinical-stage biotechnology company, of US$ 105 million in Series C financing. The company is developing breakthrough treatments for organ fibrosis and Claudin-1 (CLDN1)-positive tumors. The funding will be used to support the clinical development of Alentis' lead investigational products, ALE.F02 and ALE.C04, as well as the development of the CLDN1 platform. CLDN1 antibody drug conjugates (ADC) and bi-specific antibodies are being engineered using the platform.

Global Antibody Drug Conjugates Market: Restraint

Toxic side effects of ADCs: One of the major factors hampering market growth is unavoidable toxic side effects, which are caused by the premature release of cytotoxic small molecules into the bloodstream. According to an article published by Biopharma PEG, a biotechnology-oriented company, most existing ADCs appear to have a toxicity profile dominated by "off-target, off-tumor" events. The associated increased risk is determined by the toxicity profile of cytotoxic small molecules. Maytansine (DM1) off-target toxicity included hepatotoxicity and thrombocytopenia. Monomethyl auristatin E (MMAE) was linked to an increased risk of peripheral neuropathy, neutropenia, and anemia. The compound monomethyl auristatin F (MMAF) has been linked to ocular toxicity. Key players operating in this market need to develop innovative ADCs that are less toxic as compared to existing ones, this will assist in creating lucrative opportunities for market development over the forecast period.