Daiichi Sankyo is doubling down on its investment in the red-hot antibody-drug conjugate (ADC) space. The Japanese drugmaker announced it is building a new $152 million ADC manufacturing facility in Shanghai as part of its long-term commitment in China.
The ADC production site will help the company “meet the growing demand for oncology products” and “marks a significant milestone in Daiichi Sankyo's development in China and demonstrates the company's strong confidence” in the Chinese market, according to the announcement.
AstraZeneca-partnered breast cancer therapy Enhertu is the mainstay of Daiichi Sankyo’s ADC business. Chinese authorities recently announced that effective next month Enhertu is among 91 new additions to China’s National Reimbursement Drug List under the country’s insurance program.
Daiichi Sankyo will remain the dominant player in the ADC market for oncology treatments, according to a report released last year by data analytics firm GlobalData. The Japanese company is forecasted to generate worldwide ADC sales of nearly $11 billion by 2029.