Shares of Duality Biotherapeutics climbed following an announcement that it has entered into a partnership to co-develop next-generation antibody-drug conjugates (ADCs) for multiple cancer indications with a major global biotech subsidiary of a Swiss pharmaceutical giant. This collaboration is based on the company’s proprietary DUPAC payload platform and is valued at over $1 billion.
The company’s stock in Hong Kong closed up 2%, reaching HKD 199.50 (approximately $25.46) per share, after experiencing an intraday increase of up to 6.3%.
According to a regulatory filing, the Chinese biotech will spearhead drug discovery and early-phase global clinical trials for the joint programs. The partner will hold an exclusive worldwide license for the commercial sale of ADC products developed through the collaboration, assuming responsibility for all subsequent clinical development and commercialization efforts after the initial Phase 1a trials are completed.
As part of the agreement, Duality will receive an initial payment of $45 million, along with potential milestone payments exceeding $1 billion, which are tied to development progress. The deal also includes tiered royalties based on sales performance.
DUPAC stands as one of the company’s four core ADC payload platforms, with several payloads designed around it that exhibit unique anti-tumor mechanisms.
ADCs represent an innovative class of targeted therapies created by attaching potent small-molecule drugs to monoclonal antibodies through chemical linkers. This design allows for precise delivery of the cytotoxic agents directly to tumor cells, thereby enhancing treatment effectiveness and minimizing damage to healthy tissues.
Compared to traditional chemotherapy, ADCs can offer reduced side effects, making them a prominent focus in cutting-edge oncology research despite the significant technical challenges involved. Several Chinese biotech companies have established in-house platforms for ADC development, licensing technologies, and building product pipelines for international markets.
In 2023, the company formed licensing and development partnerships involving ADC platforms with biotech firms such as BioNTech, BeOne Medicines, and Adcendo. In collaborations with BioNTech and BeOne Medicines, the company handled early-stage development, while partners took charge of later-stage clinical trials and commercialization efforts. The partnership with Adcendo is a licensing agreement for platform technology, whereby the Danish company manages the drug development process independently.