GSK agrees to pay up to $1.7 billion for antibody-drug conjugate

GSK PLC (GSK) said Wednesday that it has agreed to pay $185 million up front and up to $1.525 billion in success-based milestone payments to license an antibody-drug conjugate from Chinese biopharma company Hansoh Pharma (HK:3692). The deal gives GSK exclusive rights to further develop and commercialize the ADC, HS-20093, which in early studies has shown promise for the treatment of lung cancer. ADCs, which are designed to target cancer cells while minimizing harm to healthy cells, have spawned a number of licensing agreements and other deals lately, including an October agreement between GSK and Hansoh for an ADC focused on ovarian and endometrial cancer. AbbVie (ABBV) said late last month that it would acquire ImmunoGen Inc. (IMGN), whose key asset is an ADC for ovarian cancer. GSK plans to launch phase 1 trials for HS-20093 outside China in 2024, the company said in a release. GSK's American depositary receipts gained 0.2% premarket on Wednesday and are up 3.9% in the year to date, while the S&P 500 has gained 24%.

-Eleanor Laise

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12-20-23 0828ET

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