With AbbVie (NYSE: ABBV) reporting on Nov. 30 that it plans to acquire ImmunoGen, (NASDAQ: IMGN) a biotech developing antibody-drug conjugate (ADC) therapies for various cancers, it's clear that the pharma is intent on avoiding being left behind by the competition. Specifically, it's following in the footsteps of companies like , which in March acquired the ADC-focused biotech Seagen for $43 billion in cash.

Now, with the conditions in the ADC market set to heat up over the coming years, investors are faced with a quandary. Which drug developers are serious about winning the segment, and which are simply trying to reduce the chances of missing out on potential revenue amid the approaching gold rush?

In terms of its financial outlay, AbbVie is buying ImmunoGen for just over $10 billion in cash, so right off the bat it's clear that the scale of its commitment isn't as large as Pfizer's. The biotech has one ADC on the market, called Elahere, and it's indicated for chemotherapy-resistant ovarian cancer. As Elahere was only approved by the U.S. Food and Drug Administration (FDA) in November 2022, there isn't a baseline for how much revenue it'll bring in annually. Nonetheless, given that Vertex Pharmaceuticals sought to license its ADC technology for up to $337 million in milestone payments, there isn't any doubt that there's a lot of interest in what the company can do.

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Source Fool.com