The global ADC therapeutics market is expected to grow to $4B by 2023, with double digit approvals within 3-years, according to a new analysis in the CPhI Annual Report.
 
Vivek Sharma, chief executive officer of Piramal Pharma Solutions, expects the global market for ADCs to grow at around 19% CAGR between 2017 and 2030 and reach an estimated value of $4 billion in the next five years, with 17 drugs that are either approved or in late stages of clinical development, catalyzing such growth.
 
“The last few years have seen a progressive evolution of targets from first to second and third generation Antibody Drug Conjugates (ADCs), which is now accelerating growth as new compounds are more targeted, more druggable and potentially have a better chance for approval.” said Vivek Sharma.
 
In total there are now 600 clinical trials being conducted worldwide on ADCs, with 202 ADCs entering clinical trials – out of which 116 are actively progressing. There has been an increase of 30% in the last 12 months with 23 new ADCs entering clinical trials.
 
The report outlines that CMO’s and CDMO’s are particularly well set to capitalise on this growing therapeutic product class, and may even lead to new business models, such as co-development partnerships, particularly amongst smaller and medium sized biotechs.
 
Due to technical challenges associated with ADC manufacturing and the substantial investment involved on safety and hazardous material equipment, Vivek estimates that around 70% of ADC manufacturing is outsourced to CMOs. This is expected to rise, particularly for horizontally integrated CDMOs, along with co-development business models, driven by biotechs and smaller companies that need specialist development expertise and facilities. 
 
In the long term, the Annual Report also highlights that ADCs are now being utilized in other therapeutic products classes beyond oncology. Specifically, ADCs are projected to provide more targeted therapeutics in infectious diseases (against multi drug resistant bacteria) and chronic conditions such as autoimmune and cardiovascular diseases.
 
CPhI Brand Director Europe, Orhan Caglayan said, “The findings in the full CPhI Annual Report  further reinforces that there is a clear bridge now forming between small and large molecule industries, with the cross sharing of knowledge in the ADC market leading to less clinical attrition and greater approvals. So whilst it is clearly good news for CPhI and bioLIVE – as we combine small and large molecule exhibitions in 2018 – the market also looks extremely promising for CDMOs, and the wider outsourcing industry with over 70% of future manufacturing set to be contracted to specialist providers. So I encourage all of our attendees at CPhI Worldwide to engage both these findings and with the wider industry this week – by establishing new partnerships we will help accelerate development of the global market”.