Adagene Collaborates with Incyte to Evaluate New Therapy
Adagene (ADAG) announced a clinical collaboration with Incyte (INCY) to evaluate the combination of muzastotug and INCA33890, a TGFbetaR2 PD-1 bispecific antibody, in patients with microsatellite stable colorectal cancer with or without liver metastases. Muzastotug in combination with Merck's (MRK) anti-PD-1 therapy, Keytruda has demonstrated encouraging overall response rates and durable responses in a Phase 1b/2 trial in 3L MSS CRC patients. As a monotherapy, INCA33890 has demonstrated promising clinical efficacy and safety in immune checkpoint sensitive and insensitive cancers, including MSS CRC with and without liver metastases. Incyte has recently initiated a Phase 3 study evaluating bevacizumab and Folfox with or without INCA33890 in 700 first-line MSS CRC patients. Muzastotug, a masked anti-CTLA-4 SAFEbody with FDA Fast Track designation, is currently being evaluated in multiple ongoing studies, including: a Phase 1b/2 clinical trial in combination with pembrolizumab in MSS CRC patients without liver metastases. A randomized Phase 2 study in MSS CRC patients without liver metastases designed to determine the optimal dose to advance into a Phase 3 registration trial. A Phase 1b/2 dose escalation and expansion study of muzastotug in combination with Sanofi's SAR445877 in adults with advanced solid tumors. Under terms of the agreement, Incyte will sponsor and conduct the study and Adagene will provide clinical trial supply of muzastotug. The planned dose escalation portion of the study will evaluate safety and tolerability, followed by an efficacy expansion cohort in patients with chemotherapy-refractory MSS CRC patients with and without liver metastases. MSS CRC is well-known to be largely non-responsive to anti-PD-1 / PD-L1 therapy. INCA33890 monotherapy has demonstrated promising initial clinical efficacy and safety in immune checkpoint sensitive/insensitive tumors, including MSS CRC with and without liver metastases.
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- Offering Size: Adagene has announced a public offering of 18.67 million American depositary shares at $3.75 each, expected to raise approximately $70 million in gross proceeds, reflecting strong market confidence in its antibody therapies.
- Investor Participation: The offering attracted participation from both new and existing investors, including Janus Henderson and Deerfield Management, indicating market recognition and support for Adagene's future growth, which may strengthen its capital base.
- Offering Arrangement: The public offering is being managed by Leerink Partners and LifeSci Capital, with an expected closing date of April 6, 2026, further solidifying Adagene's financing capabilities in the biotechnology sector.
- Strategic Implications: This financing will enable Adagene to accelerate the development of its antibody-based cancer immunotherapies, leveraging the raised funds to commercialize its innovative technologies and enhance its competitive position in the market.
- Offering Pricing: Adagene announced the pricing of 18.67 million American depositary shares (ADSs) at $3.75 each, with expected gross proceeds of approximately $70 million, demonstrating the company's ability to raise capital in the market.
- Investor Participation: The offering attracted participation from both new and existing investors, including Janus Henderson Investors, Deerfield Management, and Columbia Threadneedle Investments, indicating strong market confidence and support for Adagene.
- Closing Timeline: The public offering is expected to close on April 6, 2026, reflecting the company's proactive planning for future funding needs aimed at supporting its business growth.
- Market Reaction: Following the announcement of the offering, Adagene's stock price rose 12.03% in pre-market trading to $4.0552, showcasing a positive investor response to the financing activity.
- Stock Price Plunge: Adagene Inc. (ADAG) shares fell nearly 13% in pre-market trading on Thursday, reflecting negative market sentiment following the company's latest announcements, particularly regarding the public offering pricing.
- Public Offering Pricing: The company priced its $70 million public offering at $3.75 per ADS, representing a nearly 19% discount from Wednesday's closing price, indicating investor concerns about the company's future prospects.
- Clinical Trial Update: Adagene also provided an update on the Phase 1b/2 study of Muzastotug in combination with Keytruda for patients with microsatellite stable colorectal cancer, revealing improved durability of response among trial participants, potentially offering new hope for future treatments.
- Bearish Market Sentiment: Retail sentiment on Stocktwits around Adagene trended in the 'bearish' territory, suggesting a lack of confidence among investors regarding the company's future performance, which could further impact its stock price trajectory.
- Stock Price Decline: Adagene's stock fell approximately 14% during pre-market trading on Thursday, reflecting market concerns over its pricing, as the public offering was set at $3.75 per ADS, below its 30-day volume-weighted average price, which may impact investor confidence.
- Fundraising Goals: The public offering aims to raise approximately $70 million in gross proceeds by offering around 18.67 million ADSs, with each ADS representing 1.25 ordinary shares, and the funds will be used to support the development of its antibody-based cancer immunotherapy pipeline.
- Investor Participation: The offering attracted participation from both new and existing investors, including Janus Henderson Investors, Deerfield Management, Invus, Sirenia, and Columbia Threadneedle Investments, indicating market confidence and support for Adagene's future growth.
- Use of Proceeds: Adagene plans to utilize the funds raised to advance its clinical development and regulatory activities for its antibody-based cancer immunotherapy, aiming to accelerate product launch timelines and enhance its competitiveness in the biopharmaceutical sector.
- Clinical Trial Results: In 2025, muzastotug demonstrated a 29% confirmed overall response rate (ORR) among 21 patients with MSS CRC, indicating its efficacy in treatment and potentially laying the groundwork for future registration trials.
- Survival Data: The median overall survival for the 10 mg/kg cohort was 19.4 months, which compares favorably to the 11-12 month survival rates of other treatment options, highlighting muzastotug's potential to extend patient survival and attract investor interest.
- Safety Analysis: Among 67 patients, muzastotug exhibited a low overall discontinuation rate of 4% with no Grade 4 or 5 treatment-related adverse events, indicating a favorable tolerability profile that could enhance its market competitiveness.
- Financial Position: As of December 31, 2025, the company reported cash and cash equivalents of $74.5 million, expected to support operations into early 2028, demonstrating robust financial management that aids in the ongoing clinical research efforts.
- Strong Fiscal Performance: Adagene's FY Non-GAAP EPS of -$0.24 surpasses market expectations by $0.41, indicating significant improvements in financial management and boosting investor confidence.
- Revenue Surge: The company reported FY revenue of $7.7M, a staggering 7600% increase year-over-year, exceeding expectations by $6.03M, which highlights robust market demand for its products or services and sets a solid foundation for future growth.
- Positive Market Reaction: The earnings beat is likely to drive Adagene's stock price upward, attracting more investor interest and enhancing the company's market valuation and financing capabilities.
- Optimistic Strategic Outlook: With substantial revenue growth, Adagene is positioned to increase R&D investments, driving new product development and market expansion, thereby strengthening its competitive edge in the biopharmaceutical industry.







