Roche, Hansoh Partner to Develop Cancer-Targeted ADCs

Roche is investing $400 million upfront in a partnership with Hansoh Pharma to develop antibody-drug conjugates (ADCs) targeting cancer. The deal, announced Monday, expands Roche’s collaboration with Chinese drugmakers, securing access to two existing preclinical Hansoh programs and commissioning additional candidates against targets it proposes.

Under the agreement, Roche will identify cancer targets, and Hansoh will use its ADC platform to create therapies. This builds on a previous deal where Roche licensed Hansoh’s CDH17-targeting ADC HS-20110 for $80 million upfront in October. Hansoh will engineer the therapies and lead development through early human testing, specifically global Phase Ia trials.

A Growing Trend in Pharma Partnerships

This partnership reflects a broader trend of global pharmaceutical companies turning to Chinese firms for early-stage drug development. AstraZeneca, for instance, recently committed $1.2 billion upfront to CSPC Pharmaceutical for eight obesity and related disease programs, gaining access to CSPC’s peptide discovery and once-monthly dosing technologies. AstraZeneca has also turned to a Chinese partner to develop candidates through early human trials, signing a Jan. 30 agreement with CSPC Pharmaceutical covering these programs, with CSPC leading the initial four through Phase I and developing four additional programs.

According to J.P. Morgan data, Chinese assets accounted for 39% of global large-cap biopharma licensing deals with upfront payments of at least $50 million in 2025 (through December 15th), and 32% of upfront payments within that group. This highlights the increasing importance of China in the global pharmaceutical environment, with big pharma sourcing a significant share of its in-licensed drugs from the country.

Deal Details and Potential Rewards

Hansoh will lead development of the ADCs through global Phase Ia trials, after which Roche will take over development outside of mainland China, Hong Kong, Macau, and Taiwan, where Hansoh retains exclusive rights. This territorial division is common in such partnerships, allowing Chinese firms to maintain a foothold in their domestic markets while global partners handle international expansion.

Beyond the upfront payment, Hansoh stands to gain $110 million on the deal’s first anniversary and potentially over $15 billion in milestones, including development, regulatory, and commercial milestones, plus royalties on future sales. Hansoh also has the option to participate in the development of up to two programs outside its retained territories, securing additional commercial upside in the United States. This optionality provides Hansoh with flexibility to further capitalize on successful candidates.

Roche’s Strategic Expansion

This deal follows a similar Roche agreement with DualityBio in August, where Genentech paid $45 million upfront for ADC development against Genentech-selected targets. DualityBio will lead discovery and early global clinical development, with Genentech taking over after Phase Ia. The Hansoh partnership represents a significantly larger upfront investment, further solidifying Roche’s commitment to leveraging Chinese expertise in ADC development and expanding its cancer pipeline.