DEAL TRACKING

Strategic ADC Manufacturing and
Capital Allocation Assessment

The market intelligence team of a large pharmaceutical company partnered with Roots Analysis to develop a data-driven roadmap for its ADC "make vs buy" strategy. Through targeted deal tracking and competitive intelligence, the team enabled informed, high-value capital investment decisions.

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The Challenge

Tracking ADC Manufacturing Deals for Capital Planning

Manufacturing Strategy
Assessment

The client sought clarity on ADC manufacturing models, specifically whether drug developers favor in-house production capabilities or outsourcing to CDMOs with specialized capabilities.

Capital Allocation
Decision-Making

Senior leadership team required data-driven insights to assess the viability of investing in a new ADC manufacturing facility or entering long-term contract manufacturing partnerships.

Understanding
Agreement Scope

The client wanted to identify the specific scope of each agreement in order to determine whether to adopt a hybrid model (partial in-house with selective outsourcing), pursue complete outsourcing, or establish fully integrated in-house capabilities.

The Roots Way

How Roots Helped?

Roots Analysis deployed a targeted deal tracking framework focused exclusively on ADC manufacturing outsourcing activity.

Tracking Manufacturing Agreements: As a first step, we shortlisted 60 leading ADC drug developers and categorized them into three peer groups based on company size (very large and large, mid-sized and small players). We then conducted an exhaustive search to identify partnership agreements signed by these developers over the past five years for manufacturing, testing, packaging and distribution of their respective ADC assets.

Agreement Scope and Model Analysis: The identified deals were then analyzed across multiple parameters, such as year of partnership, type of partnership, type of partner and purpose of partnership (such as drug substance manufacturing, drug product manufacturing, fill / finish operations, packaging, quality testing and distribution support). We also evaluated whether the ADC developers adopted fully outsourced models, hybrid structures, or vertically integrated in-house approaches, further segmenting the data by clinical stage and geographic footprint.

Strategic Investment Benchmarking: Finally, the insights derived from the above analysis were used to benchmark outsourcing intensity across peer groups, enabling an assessment of prevailing manufacturing strategies. This facilitated a balanced comparison between capital-intensive facility expansion and partnership-driven models, thereby supporting the client's manufacturing investment decision-making process.

Change We Created

Results You Can Quantify & Impact
Our Clients Can Count On

35%

Reduction in Capital Risk

Data-driven manufacturing strategy assessment enabled leadership to optimize capital deployment and avoid premature large-scale facility investments.

Faster Strategic Alignment

Structured deal intelligence provided clear visibility into industry manufacturing models, accelerating internal discussions and executive decision-making.

40%

More Informed Investment Decisions

Scalable hybrid strategy was adopted, retaining IP-sensitive conjugation in-house while leveraging specialized partners for high-potency fill / finish operations.