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SAN DIEGO/SUZHOU/PRINCETON - Adagene Inc. (NASDAQ:ADAG), a biotech company with a market capitalization of approximately $92 million, announced Tuesday a partnership with ConjugateBio Inc. to provide a proprietary antibody for use in bispecific antibody-drug conjugate (ADC) development programs.
Under the agreement, Adagene will receive an undisclosed upfront payment, along with potential milestone and royalty payments. The company will retain all non-ADC rights to the partnered antibody. According to InvestingPro data, Adagene maintains a healthy balance sheet with more cash than debt, though it’s currently experiencing rapid cash burn.
"We have been very impressed with ConjugateBio’s ability to streamline ADC development, and we are pleased to provide an internally developed antibody for this purpose," said Peter Luo, CEO and President of R&D at Adagene.
Kum Yoo, Co-founder and CEO of ConjugateBio, stated, "Adagene’s exemplary and differentiated antibody discovery capabilities give us confidence that in our hands, we can develop novel, potent and safe antibody drug conjugates."
Adagene, a platform-driven biotechnology company, focuses on developing antibody-based cancer immunotherapies using its proprietary technologies, including the SAFEbody precision masking technology designed to address safety challenges in antibody therapeutics. While the stock has shown strong returns over the past three months, InvestingPro analysis indicates the company faces profitability challenges, with analysts not expecting positive earnings this year.
The company’s lead clinical program, ADG126 (muzastotug), is currently in phase 1b/2 clinical studies in combination with anti-PD-1 therapy, with a focus on Metastatic Microsatellite-stable Colorectal Cancer.
ConjugateBio is a privately held company based in Princeton, NJ, focused on developing bispecific ADCs against solid tumors.
According to the press release statement, the ADC market is expected to reach over $30 billion by 2030. With a current ratio of 2.3, Adagene appears well-positioned to pursue opportunities in this growing market, though investors should note that InvestingPro data shows the stock currently trades at a premium to its Fair Value.
In other recent news, Adagene Inc. has announced a strategic investment of up to $25 million from Sanofi, which will support the development of Adagene’s antibody-based therapies. This investment will specifically fund the clinical development of muzastotug (ADG126) in a phase 2 trial targeting microsatellite stable colorectal cancer. As part of their expanded collaboration, Adagene will provide Sanofi with muzastotug for a phase 1/2 clinical trial to assess its safety and efficacy in combination with other anticancer therapies. Additionally, Sanofi has exercised its option for a third SAFEbody discovery program, triggering an option exercise fee and potential milestone payments under their 2022 partnership agreement.
Adagene also reported promising results from a clinical trial involving ADG126, showing a confirmed overall response rate of 29% in advanced colorectal cancer patients. The trial highlighted reduced treatment-related toxicities and durable responses, with some patients remaining on treatment for over forty weeks. Adagene plans to discuss the dosing regimen with regulatory bodies for further clinical development. The company’s cash reserves, combined with Sanofi’s investment, are expected to fund operations into 2027. A Sanofi representative will join Adagene’s Scientific Advisory Board to provide strategic guidance on scientific and clinical initiatives.
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