Daiichi Sankyo began construction of a 1.1 billion yuan ($151 million) manufacturing facility in Shanghai on Monday to produce antibody-drug conjugates (ADCs), an emerging class of precision cancer treatments.

Executives from Daiichi Sankyo, along with government officials from the Shanghai Municipal Government and the Pudong New Area Government, attend the groundbreaking ceremony for a new antibody-drug conjugate facility in Shanghai, Sept. 8, 2025. [Photo courtesy of Daiichi Sankyo China]

The Shanghai plant is among the first facilities approved under China's cross-border biotechnology manufacturing pilot, allowing the company to produce ADCs locally and expand access to the innovative cancer drugs.

Daiichi Sankyo noted China's recent measures to attract biopharmaceutical investment, including policy reforms and improved drug reimbursement systems, align with the company's strategy and encourage multinational companies to expand research and manufacturing in the country.

The company said Shanghai's established biotech infrastructure and streamlined regulatory approvals will help bring ADC treatments to Chinese cancer patients more quickly.

The pilot policy allows global companies to split manufacturing processes across different countries. Daiichi Sankyo said it will conduct high-value production steps in Shanghai's Pudong New Area, linking its global technology with local demand while establishing practices that support the continued opening of China's biopharma sector to international markets.

The facility will use Daiichi Sankyo's leading ADC technology platform to address local clinical needs.

"Our global ADC platform supports a robust pipeline across multiple oncology indications, including several clinical-stage candidates," said Dr. Hiroto Kashiwase, executive officer and head of the Global Technology Unit at Daiichi Sankyo.

"This facility is a key driver — not only for production but also for faster patient access through increased capacity and supply stability. It will enable us to deliver breakthrough ADC therapies to Chinese patients more efficiently and address their growing and diverse treatment needs," he added.

Cancer cases are increasing in China due to population aging and lifestyle changes, creating demand for new treatments like ADCs. Local production aims to ensure steady supplies for Chinese patients.

Daiichi Sankyo's new ADC facility, among the first in China, aims to set benchmarks in three areas: strengthening supply chains through local high-value production, advancing technology with global platforms and comprehensive quality control, and creating a scalable model for cross-border collaboration.

The Japanese drugmaker, which entered China in the 1980s, said the facility represents a major step in integrating research, production and sales operations in the country.

"Guided by a patient-centric approach, we will intensify our local strategy to broaden treatment access and reinforce our long-term commitment to the Chinese market," said Michio Hayashi, president of Daiichi Sankyo China. "By integrating global R&D with local execution, we aim to support 'Healthy China 2030' through improved patient outcomes and high-quality industry development."