China Biotech Weekly #14: ADC Gold Rush — Why ADCs and Bispecifics Accounted for 7 of the 10 Largest China Deals

This Week's Top Takeaway

ADCs and bispecifics accounted for seven of the ten largest China-to-West licensing deals in 2025-2026. This isn't a trend — it's a structural advantage. Chinese biotechs have built proprietary linker-payload platforms and bispecific engineering capabilities, amassed clinical data at scale through CDE's expedited pathways, and are now licensing assets at valuations that would have been unthinkable three years ago. If your BD team doesn't have an active China ADC and bispecific search mandate, your competitors do.

BIOSECURE Watch

Status: 🟢 No Change This Week

The OMB interagency review process continues with no new public developments. The running status:

BGI Group entities (华大基因, MGI Tech, Complete Genomics): On 1260H list. Near-certain BCC designation under Category A. No change in status.
WuXi entities (药明康德, WuXi Biologics, WuXi XDC): NOT designated. Congressional pressure continues. WuXi XDC IPO preparation proceeding — interpreted as preemptive structural isolation.
SEC disclosure count: ~15 public companies have disclosed BIOSECURE as a material risk factor. No new filers this week.

One development worth watching: A bipartisan group of senators sent a letter to OMB Director Young requesting a public briefing on the BCC designation timeline. The letter is not binding, but it signals congressional impatience with the pace of implementation. If OMB accelerates the review, the December 2026 deadline could become a mid-2026 publication — which would significantly compress transition planning timelines for affected organizations.

CDE Filing Watch

Notable filings from China's Center for Drug Evaluation (国家药品监督管理局药品审评中心) this week:

Kelun-Biotech (科伦博泰) received CDE acceptance for a Phase I/II trial of its next undisclosed ADC target under the Merck collaboration. This is the fourth Merck-partnered Kelun ADC to enter clinical development, confirming the platform's productivity.

Hengrui (恒瑞医药) filed a new IND for a bispecific-ADC (bsADC) — a next-generation format combining bispecific targeting with ADC payload delivery. This represents the emerging frontier of Chinese antibody engineering. No Western bsADC has reached clinical stage yet; Hengrui's filing gives it potential first-mover advantage.

Zai Lab (再鼎医药) submitted a supplemental NDA for its licensed ADC asset in a new indication. Zai Lab's model — licensing Western and Chinese assets for the China market while out-licensing its own pipeline globally — continues to generate regulatory activity at CDE.

Takeaways for BD Teams

Chinese ADC dominance is structural, not cyclical. The combination of engineering talent, CDE speed, and lower trial costs creates a self-reinforcing advantage. Expect China to remain the primary source of ADC out-licensing for the next 3-5 years.

Platform deals are the new frontier. The Merck-Kelun model — licensing technology platforms rather than individual molecules — offers better risk-adjusted returns for acquirers and higher total value for Chinese licensors. BD teams should evaluate Chinese ADC companies for their platform capabilities, not just their lead asset.

Bispecific-ADCs are coming. Hengrui's bsADC IND filing this week signals the next wave. Companies with both bispecific and ADC engineering capabilities (Hengrui, Kelun, Akeso) are positioned to lead this convergence. Start building your bsADC landscape assessment now.

Monitor the OMB timeline signal. The congressional letter to OMB requesting a public briefing could accelerate BCC list publication. If the December 2026 deadline moves to mid-2026, organizations with WuXi dependencies lose 6 months of transition planning time.

China Biotech Weekly is published every Thursday. For questions, tips, or deal intelligence, reach out at antony@chinabiointel.com. — Antony Tan