SHERIDAN, WYOMING – July 25, 2025 – In a strategic move to deepen its oncology portfolio and join the accelerating global race for antibody-drug conjugates (ADCs), NextCure has announced a major licensing agreement with China's Simcere Pharmaceutical Group, securing ex-China rights to a novel ADC candidate targeting solid tumors.
The agreement, disclosed earlier this week, grants NextCure access to SIM0505 — an experimental ADC that targets CDH6 and leverages Simcere’s proprietary topoisomerase 1 inhibitor payload. In return, Simcere receives an undisclosed upfront payment and is eligible for development, regulatory, and sales milestone payments outside China, totaling up to $745 million.
Strategic Access to High-Potential ADC Technology
The deal marks a significant step for NextCure as it strengthens its position in the highly competitive ADC field. SIM0505 is currently undergoing Phase I dose escalation studies in China. Under the terms of the agreement, NextCure will lead development in the United States and is expected to initiate its own Phase I trial in Q3 2025.
“Simcere’s proprietary payload is a potent cytotoxin with a potentially improved safety and efficacy profile compared to other topoisomerase inhibitors,” said Michael Richman, NextCure’s president and CEO, in the official announcement.
Beyond SIM0505, the collaboration also grants NextCure rights to Simcere’s linker and topoisomerase payload technologies. These will be used to develop an additional ADC targeting an undisclosed preclinical molecule, further expanding NextCure’s development scope.
Pipeline Expansion and Market Implications
With SIM0505 onboard, NextCure now has two ADCs in active development:
- SIM0505, licensed from Simcere, targeting CDH6 in solid tumors, Phase I (U.S. trial begins Q3 2025)
- LNCB74, developed in collaboration with LigaChem, also an ADC for solid tumors, currently in Phase I dose escalation
The addition of SIM0505 is expected to enhance NextCure’s clinical pipeline and position the company more competitively in a crowded ADC space. However, the market reacted cautiously. Following the announcement, NextCure’s share price dropped from around $0.70 to $0.50 — a 26% decline by Monday afternoon.
ADC Collaborations Reflect Industry Momentum
The deal aligns with a broader biopharma trend of Western firms tapping into Chinese innovation, particularly in the ADC space. While much of the recent attention has centered around obesity treatments, ADCs are attracting equally strong licensing activity:
- GSK acquired two ADC assets from DualityBio and Hansoh Pharma for gastrointestinal, lung cancers, and sarcomas — investing nearly $3 billion combined.
- Gilead secured conjugation tech from Tubulis for ultra-stable ADCs in a $415 million deal (December 2024).
- Roche paid $1 billion in January 2025 for a Phase I-stage ADC from Innovent targeting small cell lung cancer.
This wave of cross-border licensing reflects both the innovation pace in China’s biotech sector and global demand for differentiated oncology assets.
Looking Ahead
NextCure’s agreement with Simcere illustrates a growing strategic emphasis on ADCs as a cornerstone of targeted cancer therapy. The company’s upcoming U.S. trial of SIM0505 and continued investment in ADC development reinforce its long-term focus on scalable, precision oncology solutions.
Learn more at www.nextcure.com