Next Generation Drug Conjugates Market Report 2025

The next generation drug conjugates market size has grown rapidly in recent years. It will grow from $2.15 billion in 2024 to $2.47 billion in 2025 at a compound annual growth rate (CAGR) of 14.8%. The growth in the historic period can be attributed to an increasing understanding of tumor biology, the success of early drug conjugates, increasing oncology, increasing investment and funding, and increasing patient advocacy and awareness.

The next generation drug conjugates market size is expected to see rapid growth in the next few years. It will grow to $4.41 billion in 2029 at a compound annual growth rate (CAGR) of 15.6%. The growth in the forecast period can be attributed to the growth of combination therapies, clinical research expansion, focus on rare diseases, strategic collaborations, and emerging bioinformatics tools. Major trends in the forecast period include advancements in monoclonal antibody technology, combination therapies with JAK inhibitors, artificial intelligence in drug development, development of biosimilars, and advancements in subcutaneous formulations.

The forecast of 15.6% growth over the next five years reflects a modest reduction of 0.4% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff escalations could burden U.S. oncology research by driving up prices of novel antibody-drug conjugates and peptide-drug conjugates sourced from Germany and South Korea, resulting in delayed targeted cancer therapy development and higher precision medicine research and development expenditures. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing prevalence of cancer is anticipated to drive the growth of the next-generation drug conjugates market in the future. Cancer encompasses a group of diseases characterized by the uncontrolled growth and spread of abnormal cells within the body. The rise in cancer cases can be attributed to several factors, including an aging population, lifestyle choices, environmental exposures, advancements in detection, genetic predispositions, and infectious agents. Next-generation drug conjugates aim to combat cancer by delivering targeted therapies directly to cancer cells, thereby enhancing treatment effectiveness while minimizing harm to healthy tissues. For example, in August 2024, a report by the Australian Institute of Health and Welfare, a national agency focused on health and welfare statistics in Australia, projected that by 2034, the country would see approximately 209,000 new cancer diagnoses, up from an estimated 169,000 cases expected in 2024. This increase reflects the impact of a growing population and rising cancer rates. Hence, the escalating prevalence of cancer is propelling the growth of the next-generation drug conjugates market.

Key players in the next-generation drug conjugates market are pursuing strategic partnerships to enhance research and development capabilities, accelerate product innovation, and expand their market presence. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits and success. For instance, in November 2023, Prelude Therapeutics Incorporated, a U.S.-based clinical-stage precision oncology company, entered into a partnership with AbCellera Biologics Inc., a Canadian biotechnology firm, to develop first-in-class precision antibody-drug conjugates (ADCs) for oncology applications. This collaboration will focus on the discovery, development, and commercialization of innovative ADCs, beginning with a program targeting a SMARCA degrader linked to a novel antibody. The goal of this strategy is to expand the therapeutic applications of Prelude's small-molecule SMARCA2 selective degraders to a broader patient population, particularly those with cancers not associated with SMARCA4 mutations.

In March 2024, Johnson & Johnson, a U.S.-based pharmaceutical and medical device manufacturer, acquired Ambrx Biopharma for $2 billion. This acquisition aims to strengthen Johnson & Johnson's oncology portfolio and further the development of next-generation antibody-drug conjugates designed to transform cancer treatment. Ambrx Biopharma is a clinical-stage biopharmaceutical company in the U.S. specializing in next-generation drug conjugates.

Major companies operating in the next generation drug conjugates market are Pfizer Inc., Johnson & Johnson, Merck & Co. Inc., AbbVie Inc., Novartis International AG, AstraZeneca PLC, Daiichi Sankyo Company Limited, Eisai Co Ltd., Bicycle Therapeutics plc, Zymeworks Inc., Genentech Inc., MacroGenics Inc., Abzena plc, Innate Pharma S.A., CytomX Therapeutics Inc., ImmunoGen Inc., Ascentage Pharma Group International, Mersana Therapeutics Inc., Antengene Corporation Limited, Nurix Therapeutics Inc., Tubulis GmbH.

North America was the largest region in the next generation drug conjugates market in 2023. The regions covered in the next generation drug conjugates marker report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the next generation drug conjugates marker report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The next-generation drug conjugates market consists of revenues earned by entities by providing services such as targeted cancer therapies, gene therapy conjugates, and combination therapies. The market value includes the value of related goods sold by the service provider or included within the service offering. The next-generation drug conjugates market also includes sales of small molecule drug conjugates, RNA-targeted conjugates, and enzyme-linked drug conjugates. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a significant impact on the pharmaceutical sector. Companies are grappling with higher costs on imported active pharmaceutical ingredients (APIs), glass vials, and laboratory equipment - many of which have limited alternative sources. Generic drug manufacturers, already operating with minimal profit margins, are particularly affected, with some scaling back production of low-margin medications. Biotech firms are also experiencing delays in clinical trials due to shortages of specialized reagents linked to tariffs. In response, the industry is shifting API production to regions like India and Europe, building up inventory reserves, and advocating for tariff exemptions on essential medicines.

The next-generation drug conjugates market research report is one of a series of new reports that provides next-generation drug conjugates market statistics, including the next-generation drug conjugates industry's global market size, regional shares, competitors with a next-generation drug conjugates market share, detailed next-generation drug conjugates market segments, market trends and opportunities, and any further data you may need to thrive in the next-generation drug conjugates industry. This next-generation drug conjugates market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Next-generation drug conjugates refer to advanced formulations designed to enhance the efficacy and safety of targeted therapies. These drug conjugates employ cutting-edge targeting technologies and improved payloads to deliver powerful treatments directly to disease cells with greater precision and fewer side effects.

The main types of next-generation drug conjugates include peptide receptor radionuclide therapy, ligand-mediated RNAi conjugates, ligand-conjugated antisense medicines, and peptide drug conjugates. Peptide Receptor Radionuclide Therapy (PRRT) is a targeted cancer treatment that utilizes radioactive peptides to bind to and destroy tumor cells that express specific receptors. The targeting ligands consist of amino sugars, lipids, peptides, small molecules, and virus-like particles, while the payloads include oligonucleotides, radionuclides, peptides, and small molecules. This therapy can be administered as either a monotherapy or in combination with other treatments for various indications, including gastroenteropancreatic neuroendocrine tumors, prostate cancer, leptomeningeal carcinomatosis due to breast cancer brain metastases, hereditary transthyretin amyloidosis, atherosclerotic cardiovascular diseases, severe hypertriglyceridemia, hereditary angioedema, acute hepatic porphyria, and more.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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