Adagene Reports Promising Phase 1b/2 Trial Data, Secures $25M Investment from Sanofi, and Partners with ConjugateBio

Adagene reported promising Phase 1b/2 trial data for ADG126 in combination with Merck's KEYTRUDA for microsatellite stable colorectal cancer. The company secured a strategic investment of up to $25 million from Sanofi and entered into a partnership with ConjugateBio for the development of bispecific ADCs. Adagene's overall stock score is neutral due to poor financial performance and challenging valuation.

Adagene Inc. (Nasdaq: ADAG), a platform-driven biotechnology company, reported promising Phase 1b/2 trial data for ADG126 in combination with Merck's KEYTRUDA for microsatellite stable colorectal cancer (MSS CRC). The company announced a 19.4-month median overall survival (mOS) in the 10 mg/kg dose cohorts, comparing favorably with historical benchmarks [1]. Additionally, Adagene secured a strategic investment of up to $25 million from Sanofi and entered into a partnership with ConjugateBio for the development of bispecific ADCs.

Adagene's Chief Executive Officer, Peter Luo, Ph.D., stated, "The first half of 2025 was tremendously important for Adagene, as we shared the early overall survival benefit with ADG126 in combination with Merck’s (known as MSD outside of the US and Canada) anti-PD-1 therapy, KEYTRUDA® (pembrolizumab) that exceeds standard of care and is highly competitive with data from other products in development" [1].

The company expects to begin enrolling patients in Phase 2 in the second half of 2025, following alignment with the FDA on Phase 2 and Phase 3 trial design elements. Adagene also plans to initiate a Phase 1b/2 trial in combination with ADG126 in over 100 patients as part of its collaboration with Sanofi [1].

Adagene's financial performance for the six months ended June 30, 2025, reflected a net loss of $13.5 million, compared to $17.0 million for the same period in 2024. Research and development expenses decreased by approximately 18% to $12.0 million, while administrative expenses remained relatively stable at $3.7 million [1].

The company's cash balance as of June 30, 2025, was $62.8 million, compared to $85.2 million as of December 31, 2024. This decrease reflects the company's focus on clinical development and the strategic investment from Sanofi [1].

Adagene's overall stock score is neutral due to poor financial performance and challenging valuation. However, the positive trial data and strategic partnerships indicate potential growth opportunities for the company [1].

References:
[1] https://investor.adagene.com/news-releases/news-release-details/adagene-reports-six-months-2025-financial-results-and-provides