The clinical / commercial success of 1st gen programs (currently approved ADCs are expected to generate >$30B in sales by 2030) spurred a wave of recent M&A as pharma sought to get exposure:

• SGEN / Pfizer ($43B)
• IMMU / GILD ($21B)
• IMGN / ABBV ($10B)
• AMAM / JNJ ($2B)

These takeouts limited the # of "pure play" ADC biotechs on the public market today. Notable names include Mersana, Macrogenix, ADC Therapeutics, Pyxis Oncology, Bicycle Therapeutics and Elevation Oncology

Even within Pharma, ADC exposure is very concentrated (see Exhibit 2: ADC Portfolio Gaps in Big Pharma)

These next-gen pure plays are deploying new ADC platforms that aim to address issues with linker stability / homogeneity, PK and tumor cell selectivity. Some examples:

• Bicycle --> BTCs --> BT5528, BT8009, BT1718
• BioAtla --> CAB --> BA3011, BA3021

While M&A and IPOs capture the flagship activity, most of the deal volume has been within BD (partnerships, licensing) and private fundraising

Since 2022, we've seen >$60B in disclosed BD deals, with more than half coming since 2H'23 (much driven by Merck / Daiichi's mega-deal)

The market map below covers companies across the space, but also flags a number of emerging VC-backed players

Some notable names include:

• Firefly Bio ($94M Series A)
• Tag Works ($65M A)
• Iksuda Tx ($42M A)
• TORL Biopharma ($158M B)
• Tubulis (€60M B)

These companies (and their investors) are betting that despite the rapid growth, the ADC space expands into the >$80B opportunity across other solid / hem tumors + makes inroads beyond oncology

It's also a bet that more Pharma companies will invest heavily in the space