Huaan Securities·2025-12-31 13:24Investment Rating - The industry investment rating is "Overweight" [2] Core Insights - Antibody-drug conjugates (ADCs) have become one of the most promising and fastest-growing treatment methods, combining the precise targeting characteristics of antibody drugs with the strong cytotoxicity of small molecule drugs. ADCs show better clinical trial results compared to traditional chemotherapy, which has high off-target toxicity and increased risk of infection. The ADC market is expected to enter an explosive growth phase, with projections indicating a global market size of $115.1 billion by 2032 [5][22][68]. Summary by Sections ADC Drug Development - ADCs are characterized by their core components: highly effective cytotoxic drugs, specific monoclonal antibodies, and linkers that connect the two. The development of ADCs has made significant progress, with the first ADC approved by the FDA in 2000. The market for ADCs has grown rapidly from $2 billion in 2018 to $10.4 billion in 2023, with a CAGR of 38.6% [15][22]. ADC Industry Outlook - The ADC industry is experiencing high demand for outsourcing services, with an outsourcing rate of approximately 70%, significantly higher than the 34% for traditional biopharmaceuticals. The global ADC CXO market is projected to reach $11 billion by 2030, with a CAGR of 28.4% from 2022 to 2030 [6][31][69]. Key Companies - WuXi AppTec: A leading global CRDMO company in bioconjugates, with rapid revenue growth from $0.096 billion in 2020 to $4.052 billion in 2024, and a projected capital expenditure exceeding 7 billion RMB by 2029 [7][39]. - Hao Yuan Medicine: Focused on ADC development for over a decade, with over 90 ADC projects and more than 1,200 clients. The company has established a comprehensive ADC CDMO platform and is expanding its production capacity [7][53]. - Easton Pharmaceuticals: Provides a full range of CDMO services for ADCs and has supported multiple projects, including the first dual-load ADC project approved for clinical trials [8][61]. - Kelaiying: A leading CDMO that has entered the biopharmaceutical sector, with significant growth in ADC-related business and ongoing expansion of production capacity [9][64].