Ellipses Bets on Chinese ADC to Tackle Drug-Resistant Cancers

LONDON, UK – January 22, 2026 – In a strategic move that underscores a growing trend of Western pharmaceutical companies looking East for innovation, London-based Ellipses Pharma has secured the rights to a promising new cancer therapy from China. The clinical-stage oncology firm announced a licensing agreement with Innolake Biopharm for a first-in-class antibody-drug conjugate (ADC) targeting a protein heavily implicated in a wide range of difficult-to-treat tumors.

The deal grants Ellipses worldwide development rights, excluding Greater China, for the drug now designated EP0028. This therapy, a B7H3-targeted ADC, is already in a Phase 1 clinical trial in China and represents a significant addition to Ellipses’ pipeline, which focuses on accelerating the development of novel cancer treatments.

A New Weapon in a Crowded Fight

EP0028 enters one of the most competitive and promising arenas in modern oncology. Its target, B7-H3, is a protein found at high levels on the surface of numerous cancer cells—including prostate, pancreatic, breast, and lung cancers—but is scarce in healthy tissue. This differential expression makes it an ideal homing beacon for ADCs, which are designed to function like guided missiles, delivering a potent chemotherapy payload directly to the tumor while minimizing damage to the rest of the body.

The potential of B7-H3 has not gone unnoticed. A host of major pharmaceutical players are in a race to bring a B7-H3-directed therapy to market. The field includes heavyweights like Merck & Co. and Daiichi Sankyo with their candidate, ifinatamab deruxtecan, and GSK with risvutatug rezetecan, both of which are in late-stage clinical trials. More than a dozen other B7-H3 targeting agents are also in various stages of clinical development, making it a crowded and high-stakes field.

“We are delighted to bring this differentiated ADC into our pipeline,” said Professor Sir Chris Evans, Executive Chair of Ellipses, in a statement. “EP0028 has the potential to address unmet needs in a range of indications and further strengthens our strategy to develop Chinese originated assets in the West.”

The Differentiating Payload: A Strategy Against Resistance

In this competitive landscape, differentiation is key. Ellipses and Innolake believe they have a crucial advantage with EP0028’s unique design. While many leading B7-H3 ADCs, including those from Merck and GSK, use a topoisomerase-1 inhibitor as their cytotoxic payload—a mechanism that works by causing DNA damage—EP0028 carries a different warhead: eribulin.

Eribulin is a microtubule dynamics inhibitor. It kills cancer cells by disrupting the internal scaffolding (microtubules) necessary for cell division, a fundamentally different mechanism of action. This distinction is the basis for the company’s claim that EP0028 could be effective against tumors that have developed resistance to topoisomerase-1 based therapies. As ADC use becomes more widespread, acquired resistance is an emerging clinical challenge, creating a significant unmet need for patients who exhaust existing treatment options.

By employing a payload with a different biological target, EP0028 could offer a new line of attack for patients whose cancers have learned to evade the most common forms of ADC therapy. This positions the drug not just as another competitor, but as a potential solution for a growing patient population with few remaining options.

“Ellipses’ decision to in-license EP0028 is a significant milestone for us in continuing our mission to develop new cancer drugs for patients with high unmet clinical needs,” commented Professor Tobias Arkenau, Global Head of Drug Development and Chief Medical Officer of Ellipses. “Our collaboration with Innolake is another great opportunity to develop innovative cancer drugs globally, robustly and at speed to serve our communities.”

Bridging East and West: A Model for Modern Drug Development

This agreement is the second major in-licensing deal for Ellipses from a Chinese biotech partner, highlighting a core pillar of its corporate strategy. Its first, EP0031, is a next-generation RET inhibitor sourced from Kelun Biotech that is now advancing through Phase 2 trials. This model allows Ellipses to leverage its clinical development and regulatory expertise to advance promising assets discovered elsewhere, particularly from China's rapidly maturing biotech ecosystem.

By focusing on in-licensing and rapid development, Ellipses operates a more agile model than traditional pharmaceutical giants burdened by the immense costs and high failure rates of early-stage drug discovery. The company is supported by a Scientific Advisory Group of over 300 oncology experts who help vet potential assets, de-risking the selection process and optimizing clinical trial design.

The partnership also serves as a major validation for Hangzhou-based Innolake Biopharm, providing a pathway to global markets for its internally developed therapy. “This partnership is a great validation of our technology and capabilities,” said Mingde Xia, CEO of Innolake. “Having advanced ILB-3101 from early discovery through to the clinic, we are delighted to collaborate with Ellipses and look forward to bringing this innovative therapy to patients worldwide.”

The Path Forward: Navigating Clinical and Regulatory Hurdles

With Innolake’s Phase 1 trial ongoing in China, Ellipses plans to initiate its own parallel Phase 1 study in the United States, with subsequent expansion into Europe and other territories pending regulatory approvals. This dual-track approach is designed to accelerate data generation and global development.

However, the path to approval for any new ADC is rigorous. Regulators, particularly the U.S. FDA and European Medicines Agency, maintain a high bar for safety and efficacy. The ADC class has faced scrutiny over specific toxicities, such as interstitial lung disease (ILD), which has led to clinical trial holds and strict monitoring protocols for some programs in the past. Ellipses will need to carefully navigate its clinical trial design to demonstrate a favorable safety profile for EP0028, especially as it enters a field with established safety concerns.

If Ellipses can successfully demonstrate both the safety and the unique efficacy of its eribulin-based ADC, particularly in patients resistant to other therapies, EP0028 could carve out a vital niche in the oncology market and offer new hope for thousands of patients with hard-to-treat cancers.