Adagene Inc. entered into a licensing agreement with Third Arc Bio that grants the latter the right to use Adagene’s SAFEbody® platform to develop two masked CD3 T‑cell engagers. The contract provides Adagene with a $5 million upfront payment and the possibility of milestone payments totaling up to $840 million, in addition to royalties on end‑user sales. The deal also gives Adagene a no‑cost option to develop and commercialize the resulting molecules in Greater China, Singapore, and South Korea, thereby extending the company’s geographic footprint into key Asian oncology markets.
The upfront cash injection comes at a time when Adagene’s financials have been under pressure. For the six months ended June 30 2025, the company reported a net loss of $13.5 million, a modest improvement over the $17.0 million loss for the same period in 2024. In 2024, Adagene’s net loss widened to $33.4 million from $18.9 million in 2023, while revenue fell sharply to $0.1 million from $18.1 million the year before. With a cash balance of $62.8 million as of June 30 2025, the $5 million payment and the prospect of future milestone and royalty income provide a tangible boost to the company’s runway and a validation of its core technology.
The geographic option is strategically significant. By allowing Third Arc Bio to develop and commercialize the SAFEbody‑based engagers in Greater China, Singapore, and South Korea, Adagene gains access to markets where immuno‑oncology adoption is accelerating and where the company has historically had limited presence. Third Arc Bio’s own pipeline—highlighted by its lead bispecific T‑cell engager ARC101—complements Adagene’s SAFEbody platform, creating a synergistic partnership that could accelerate the development of next‑generation therapies.
Management emphasized the deal’s importance. Adagene’s CEO, Peter Luo, said the partnership “validates the safety and efficacy of our SAFEbody technology and opens new revenue streams in high‑growth markets.” Third Arc Bio’s CEO, Peter Lebowitz, noted that the agreement “expands the reach of our ArcStim Platform and enhances the therapeutic index of our CD3‑targeting programs.” Investors reacted positively to the announcement, reflecting confidence in the technology’s commercial potential and the company’s ability to monetize its platform.
The licensing agreement positions Adagene to broaden its SAFEbody portfolio beyond its lead candidate ADG126 (muzastotug) and to capture additional market share in precision oncology. The deal’s financial terms—up to $840 million in milestones and ongoing royalties—could materially offset the company’s recent losses and support future R&D investments. By securing a foothold in key Asian markets and partnering with a company that is actively developing complementary T‑cell engagers, Adagene strengthens its competitive stance and sets the stage for potential revenue growth as the SAFEbody platform matures.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.