Ipsen signs ADC license deal with Sutro Biopharma

French drugmaker Ipsen (Euronext: IPN) and US drug developer Sutro Biopharma (Nasdaq: STRO) have entered into an exclusive global licensing agreement for the antibody-drug conjugate (ADC) STRO-003.

Sutro noted that STRO-003 is in the final stages of pre-clinical development, targets the ROR1 tumor antigen which is known to be overexpressed in many different cancer types including solid tumors and hematological malignancies. The agreement gives Ipsen exclusive worldwide rights to develop and commercialize STRO-003 and will be the first ADC candidate joining Ipsen’s expanding portfolio.

Despite the perceived potential and interest in ADCs, investors were not over impressed, with both companies’ shares declining on the news yesterday. Ipsen fell 3.9% to 106.00 euros and Sutro dipped 1.7% to $5.24.