Ipsen joins the ADC club with deal worth up to $900m

Ipsen signed a licensing agreement to develop and commercialise Sutro Biopharma’s ADC STRO-003 intended as a treatment for solid tumours.

Akosua Mireku April 02 2024

Ipsen has joined the slew of companies developing antibody-drug conjugates (ADC) with the announcement of a new global licensing agreement with Sutro Biopharma for the development of the latter’s STRO-003.

Ipsen declared that the deal would give it exclusive worldwide rights to develop and commercialise the ROR1-targeting ADC STRO-003. Ipsen is accountable for Phase I preparations, including investigational new drug application (IND) submissions. The Paris, France-headquartered company will also be responsible for the later clinical development and global commercialisation of STRO-003.

Under the partnership, Sutro Biopharma could receive up to $900m in prospective upfront, development, and commercial milestone-based payments. This is inclusive of $90m in near-term payments in the form of tiered royalties on global sales, and an equity investment, dependent on Ipsen’s successful development and commercialisation strategy.

STRO-003 is one of three named ADCs being developed in Sutro’s clinical pipeline. In June 2023, Sutro announced plans to submit INDs for STRO-003 in 2024 and another ADC, STRO-004, in 2025.

In a 1 April company press release, Mary Jane Hinrichs, Ipsen’s head of early development said, “The potential for ADCs in oncology is well-documented and we are excited by the addition of STRO-003, Ipsen’s first ADC candidate with best-in-class potential.”

ADC development has risen in the pharmaceutical industry in recent years with major companies signing high-value deals to gain assets in the modality. In December 2023, Johnson and Johnson signed a $1.7bn licensing deal to acquire an ADC from the South Korean biotech LegoChem. Similarly, Bristol Myers Squibb spent an exorbitant $8.4bn on an ADC deal with SystImmune in the same month.

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close