China galaxy Securities released a research report saying that ADC is a high-quality track in the field of innovative drugs, with high technical barriers and strong platform scalability, leading pipeline progress and significant clinical efficacy. It is recommended to pay attention to Maiwei Biology (688062.SH), Korenbotai, Hengrui Medicine (600276.SH), Baili Tianheng (688506.SH), Rongchang Biology (688331.SH), Lepu Biology (02157), etc.

Five-element research framework, deconstructing the core technology of ADC. ADC combines the advantages of ordinary monoclonal antibodies and traditional chemotherapy into one, and has the ability to increase efficiency and reduce toxicity to kill tumors. Its technical barriers can be disassembled into five core elements, and the current technology platform and product pipeline in the field of ADC are deconstructed and analyzed from the perspective of five elements, looking for ADCs with high expression of target antigens, specific and balanced antibodies, metabolically stable linkers, high anti-tumor activity of the load, DAR value uniform coupling technology and other characteristics, to explore the following DS-8201 after the blockbuster products.

The market size is growing rapidly, and the coupling of everything and the combination of drugs have become the direction of the future. In 2023, the total global ADC drug sales are expected to exceed the $10 billion mark, and the global and China's ADC market size is expected to reach $64.7 billion and 68.9 billion billion yuan respectively in 2030. The future development direction of ADC mainly focuses on the "XDC" pan-coupling and "IO ADC" combination drugs, of which Novartis's two RDCs have been marketed, Padcev combined with K drugs to treat urothelial cancer indications front line approved.

The global active development layout, the domestic industry followed the boom. The research and development boom in the ADC field is mainly set off by Seagen, the first three-party and other Biotech to achieve technological breakthroughs, Gilead, Roche and other Big Pharma also through the acquisition of cooperation and other ways to actively layout. Domestic pharmaceutical companies to take a rapid follow-up strategy followed, Maiwei Bio's Nectin-4 ADC, Korenbotai's TROP-2 ADC and other overseas listed products on the basis of optimization and transformation, have achieved non-inferior or even better clinical efficacy.