Top Ways to Trade Growing Antibody-Drug Conjugate Demand

Jan 16, 2024

Investors may want to keep an eye on antibody-drug conjugates (ADCs).

According to Pfizer’s CEO Albert Bourla, ADCs have become one of the hottest opportunities in oncology, which would explain why it recently acquired Seagen for $34 billion. Even better, Pfizer wants to acquire even more ADC companies.

“Building a world-class oncology organization, we obviously want to continue to make sure we not only compare the best opportunities internally but also externally,” Pfizer’s newly minted chief oncology officer, Chris Boshoff, Ph.D., said in an interview on the sidelines of the J.P. Morgan Healthcare Conference, as noted by

Excitement for ADCs is only expected to grow.

After all, ADCs can “deliver a cancer-killing therapy to specifically target and kill cancer cells and minimize damage to healthy ones. Meanwhile, standard chemotherapy is less selective – it can affect both cancer cells and healthy cells,” as noted by CNBC.

Even better, ADCs could account for about $31 billion of the $375 billion global cancer market by 2028, added CNBC. Some top ADC stocks to consider include:

Sutro Biopharma, Inc., a clinical-stage company focused on the discovery and development of precisely designed cancer therapeutics, transforming what science can do for patients. The company has multiple clinical stage candidates, including luveltamab tazevibulin, or luvelta, a registrational-stage folate receptor alpha (FolRα)-targeting ADC in clinical studies.

There’s also Mersana Therapeutics (MRSN), where, according to Martin Huber, M.D., President and Chief Executive Officer of Mersana Therapeutics, “Mersana’s next-generation ADC platforms are designed to overcome key limitations of traditional ADCs. We gained important new learnings in 2023 that affirmed the differentiation of both Dolasynthen, our next-generation cytotoxic ADC platform, and Immunosynthen, our STING-agonist ADC platform.

We can also look at Takeda Pharmaceutical Co. (TAK), which recently received European Commission (EC) approval for ADCETRIS in combination with doxorubicin, vinblastine and dacarbazine (AVD) to treat adult patients with previously untreated CD30+ Stage III Hodgkin lymphoma. ADCETRIS is an antibody-drug conjugate (ADC) directed at CD30, a defining marker of Hodgkin lymphoma, and has been previously approved as a therapy for adult patients in Europe in six distinct indications.

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