ADC Therapeutics (ADCT) 2025 Conference September 03, 2025 09:10 AM ET Company ParticipantsAmeet Mallik - CEO & DirectorMohamed Zaki - Chief Medical OfficerConference Call ParticipantsEric Schmidt - Biotechnology AnalystEric SchmidtOkay, we're going to kick things off. Good morning, everyone. Welcome again to the Cantor Conference. My name is Eric Schmidt. I'm one of the analysts here, and we're delighted to welcome as our next presenting company, ADC Therapeutics. We have the company's CEO, Ameet Mallik, w ...

LAUSANNE, Switzerland, Aug. 27, 2025 /PRNewswire/ -- ADC Therapeutics SA (NYSE: ADCT), a commercial-stage global leader and pioneer in the field of antibody drug conjugates (ADCs), today announced that Ameet Mallik, Chief Executive Officer, will participate in a fireside chat at the Cantor Global Healthcare Conference 2025 on Wednesday, September 3, 2025, at 9:10 a.m. ET.A webcast of the presentation will be available via the Events & Presentations page in the Investors section of ADC Therapeutics' website, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39071 ADC Therapeutics SA (Exact name of registrant as specified in its charter) Switzerland Not Applicable (S ...

Over the last four quarters, the company has surpassed consensus EPS estimates two times. ADC Therapeutics, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $18.84 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $17.41 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the ...

Financial Data and Key Metrics Changes - Net product revenues for the second quarter were $18.1 million, and for the first half, they were $35.5 million, both slightly higher compared to the same periods in the prior year [4][28] - The company reported a net loss of $56.6 million for the second quarter, compared to a net loss of $36.5 million in the same period of 2024, primarily due to one-time restructuring and impairment costs [29] - Total operating expenses for the quarter were $47.8 million on a non-GAAP basis, representing an 8% increase over the prior year, driven by higher R&D costs [28][29] Business Line Data and Key Metrics Changes - The company is focusing on the commercialization of ZENLANTA, which has shown promising data in clinical trials, particularly in combination with glufetamab [5][10] - The LOTUS-seven trial data presented at conferences indicated a complete response rate of 86.7% across 30 efficacy evaluable LBCL patients [5][27] - The company plans to expand enrollment to 100 patients at the selected dose to support regulatory discussions [6][9] Market Data and Key Metrics Changes - The company estimates that ZENLANTA could reach peak sales of $600 million to $1 billion in the U.S. market, with significant opportunities in both DLBCL and indolent lymphomas [11][12] - The DLBCL treatment landscape is divided into complex therapies and broadly accessible therapies, with the latter expected to grow as ZENLANTA is positioned as a preferred option [12][13] Company Strategy and Development Direction - The company is strategically focusing resources on ZENLANTA commercialization and has discontinued early development efforts for other preclinical programs in solid tumors [8][9] - The company aims to position itself for long-term growth by reducing operating expenses and extending its cash runway into 2028 through a recent private placement [9][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the unmet medical need in the second line plus DLBCL landscape and the potential of LOTUS trials to address this need [38] - The company anticipates multiple data catalysts in the remainder of 2025 and 2026, with potential regulatory submissions and approvals expected [31][32] Other Important Information - The company incurred $13.1 million in restructuring and impairment costs related to the closure of its UK facility [29] - The company plans to engage with regulatory authorities regarding the LOTUS trials and explore potential pathways for approval [56][58] Q&A Session Summary Question: Impact of Roche's complete response letter on DLBCL market - Management noted that while details of the CRL are unknown, they remain confident in the unmet medical need in the second line plus DLBCL landscape and the positioning of LOTUS trials to address this need [38][39] Question: Status of LOTUS V overall survival analysis - Management indicated that it is difficult to speculate on the maturity of overall survival data by year-end, but they will provide updates once the pre-specified number of PFS events is reached [42][44] Question: Durability of responses in LOTUS trials - Management highlighted the unprecedented complete response rates observed in LOTUS trials and expressed confidence in the durability of these responses, with plans to share more data as it matures [48][50] Question: Communication of LOTUS-seven data - Management stated that they are considering the best way to communicate LOTUS-seven data, whether through a company update or at a medical congress, depending on data maturity [59][60] Question: Indolent lymphomas and NCCN inclusion - Management expressed confidence in the ongoing Phase II IIT for MZL and noted that a CR rate of 40% or above would be significant for NCCN inclusion [64][65]

Commercial Performance - 2Q 2025 net product revenues reached $18.1 million, a 6.2% increase compared to $17.0 million in the same quarter of 2024 [16, 58] - Total 1H 2025 net product revenue was $35.5 million, up from $34.9 million during the 1H of 2024 [16] Pipeline Progress - LOTIS-7 data showed a 93.3% ORR (Overall Response Rate) and an 86.7% CR (Complete Response) rate across 30 efficacy evaluable patients when ZYNLONTA was combined with glofitamab [16, 53] - Updated MZL IIT data presented at ICML demonstrate an 85% ORR and a 69% CR rate [16] - LOTIS-5 is on track to reach pre-specified PFS (Progression-Free Survival) events by the end of 2025 [16] Corporate Update - The company secured $100 million in private placement, extending the expected cash runway into 2028 [16] - A strategic prioritization was implemented, resulting in a 30% reduction in force and one-time charges of $13.1 million, including $6.7 million in employee severance and $6.4 million in non-cash impairment of assets related to the UK facility closure [16] - The company's cash balance was $264.6 million as of June 30, 2025 [16, 58] LOTIS-7 Trial Safety - In the LOTIS-7 Phase 1b trial, 56.1% of patients experienced Grade 3/4 TEAEs (Treatment-Emergent Adverse Events) [47] - Cytokine Release Syndrome (CRS) of any grade was observed in 39% of patients [49] - ICANS (Immune effector Cell-Associated Neurotoxicity Syndrome) of any grade was observed in 7.3% of patients [49] ZYNLONTA Market Potential - ZYNLONTA has a U S peak revenue potential of $600 million to $1 billion in DLBCL (Diffuse Large B-Cell Lymphoma) and indolent lymphomas [21, 22]

[Key Highlights and Strategic Overview](index=1&type=section&id=Key%20Highlights%20and%20Strategic%20Overview) ADC Therapeutics reported strong Q2 2025 results, with ZYNLONTA® showing **93.3% ORR** and a **$100 million** private placement extending cash runway - ZYNLONTA® in combination with glofitamab (LOTIS-7 trial) demonstrated a **93.3% overall response rate (ORR)** and an **86.7% complete response (CR) rate** in 30 efficacy evaluable patients with relapsed/refractory DLBCL[1](index=1&type=chunk)[3](index=3&type=chunk) - Completed a **$100 million private placement (PIPE financing)**, securing net proceeds of **$93.1 million** and extending the company's expected cash runway into 2028[1](index=1&type=chunk)[3](index=3&type=chunk) - The company has streamlined its strategic focus to pursue the expansion of ZYNLONTA® into earlier lines of therapy, leveraging its strengthened financial foundation[2](index=2&type=chunk) [Operational and Clinical Development Updates](index=1&type=section&id=Operational%20and%20Clinical%20Development%20Updates) The company advances ZYNLONTA® clinical programs and a new PSMA-targeting ADC, while restructuring to focus resources and reduce its workforce by **30%** [ZYNLONTA® Clinical Programs](index=1&type=section&id=ZYNLONTA%C2%AE%20Clinical%20Programs) ZYNLONTA® showed high efficacy in LOTIS-7 for r/r DLBCL, with FDA engagement planned, while LOTIS-5 is on track for 2025 completion, and an investigator-initiated trial showed **84.6% ORR** in marginal zone lymphoma - LOTIS-7 (ZYNLONTA® + glofitamab): The Phase 1b trial is being expanded to **100 patients** with r/r DLBCL following strong efficacy data (**93.3% ORR, 86.7% CR**), with plans to engage with the FDA in H2 2025[1](index=1&type=chunk)[3](index=3&type=chunk) - LOTIS-5 (ZYNLONTA® + rituximab): The Phase 3 confirmatory trial is expected to reach its prespecified progression-free survival (PFS) events by the end of 2025, with a potential sBLA submission anticipated in H1 2026[1](index=1&type=chunk)[5](index=5&type=chunk) - Marginal Zone Lymphoma: An investigator-initiated trial of ZYNLONTA® monotherapy demonstrated an **ORR of 84.6%** and a **CR of 69.2%** in 26 patients, with plans to assess a potential regulatory pathway[5](index=5&type=chunk) [Pipeline and Corporate Strategy](index=2&type=section&id=Pipeline%20and%20Corporate%20Strategy) The company advances a new PSMA-targeting ADC, with IND-enabling activities concluding by year-end 2025, while strategically restructuring to focus on ZYNLONTA® and reduce its global workforce by **30%** - A new exatecan-based, prostate-specific membrane antigen (PSMA)-targeting ADC is advancing, with IND-enabling activities expected to be completed by the end of 2025[5](index=5&type=chunk) - Announced a strategic restructuring to focus on ZYNLONTA®, which includes discontinuing early solid tumor programs, shutting down the UK facility, and reducing the global workforce by approximately **30%**[5](index=5&type=chunk) [Second Quarter and First Half 2025 Financial Results](index=2&type=section&id=Second%20Quarter%20and%20First%20Half%202025%20Financial%20Results) ADC Therapeutics reported Q2 2025 net product revenues of **$18.1 million**, with net loss widening to **$56.6 million** due to increased R&D and **$13.1 million** restructuring costs, ending with **$264.6 million** cash Q2 & H1 2025 Key Financial Metrics (in millions USD, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Product Revenues, Net** | $18.1 | $17.0 | $35.5 | $34.9 | | **Total Operating Expense** | $63.0 | $46.5 | $114.5 | $98.1 | | **R&D Expense** | $30.1 | $24.3 | $59.0 | $50.0 | | **Restructuring Costs** | $13.1 | $0.0 | $13.1 | $0.0 | | **Net Loss** | ($56.6) | ($36.5) | ($95.2) | ($83.2) | | **Net Loss Per Share** | ($0.50) | ($0.38) | ($0.86) | ($0.93) | | **Adjusted Net Loss** | ($28.7) | ($24.4) | ($52.6) | ($55.5) | | **Adjusted Net Loss Per Share**| ($0.25) | ($0.25) | ($0.48) | ($0.62) | - The increase in R&D expenses was driven by the timing and enrollment of the ZYNLONTA® clinical trials LOTIS-5 and LOTIS-7, and IND-enabling activities for the PSMA-targeting ADC[5](index=5&type=chunk) - The company incurred **$13.1 million** in restructuring and impairment costs in Q2 2025, consisting of **$6.7 million** in employee severance and **$6.4 million** in non-cash asset impairments related to the UK facility closure[5](index=5&type=chunk)[6](index=6&type=chunk) - Cash and cash equivalents stood at **$264.6 million** as of June 30, 2025, compared to **$250.9 million** at the end of 2024, with the increase primarily due to the **$100 million PIPE financing**[10](index=10&type=chunk) [Appendix: Financial Statements](index=7&type=section&id=Appendix%3A%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q2 and H1 2025, including Statements of Operations, Balance Sheets, and a detailed reconciliation of GAAP to Non-GAAP financial measures [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, operating expenses, and other income/expenses, culminating in a net loss of **$56.6 million** for Q2 2025 and **$95.2 million** for H1 2025 Condensed Consolidated Statements of Operations (Unaudited, in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Total revenue, net** | $18,839 | $17,410 | $41,872 | $35,463 | | **Total operating expense** | $(62,986) | $(46,451) | $(114,483) | $(98,117) | | **Loss from operations** | $(44,147) | $(29,041) | $(72,611) | $(62,654) | | **Net loss** | $(56,646) | $(36,544) | $(95,248) | $(83,150) | | **Net loss per share, basic and diluted** | $(0.50) | $(0.38) | $(0.86) | $(0.93) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows total assets of **$321.6 million**, total liabilities of **$520.7 million**, and a total shareholders' deficit of **$199.2 million**, with cash at **$264.6 million** Condensed Consolidated Balance Sheets (Unaudited, in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $264,560 | $250,867 | | Total current assets | $318,755 | $307,390 | | **Total assets** | **$321,561** | **$321,980** | | **LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY** | | | | Total current liabilities | $64,600 | $80,469 | | **Total liabilities** | **$520,745** | **$524,622** | | **Total shareholders' (deficit) equity** | **$(199,184)** | **$(202,642)** | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This table reconciles GAAP net loss to non-GAAP adjusted net loss, showing Q2 2025 GAAP net loss of **$56.6 million** adjusted to **$28.7 million** after specific non-cash and restructuring items Reconciliation of Net Loss to Adjusted Net Loss (Unaudited, in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Net loss (GAAP)** | **$(56,646)** | **$(36,544)** | **$(95,248)** | **$(83,150)** | | Share-based compensation expense | $2,062 | $1,988 | $4,483 | $2,146 | | Restructuring charges | $6,677 | $— | $6,677 | $— | | Impairment charges | $6,414 | $— | $6,414 | $— | | Other non-cash/non-recurring items | $12,813 | $10,216 | $25,031 | $24,853 | | **Adjusted net loss (Non-GAAP)** | **$(28,680)** | **$(24,370)** | **$(52,643)** | **$(55,517)** |

ZYNLONTA® in combination with glofitamab (COLUMVI®) demonstrated overall response rate (ORR) of 93.3% and a complete response (CR) rate of 86.7% in LOTIS-7 across 30 efficacy evaluable patients Expansion to 100 r/r DLBCL patients underway in LOTIS-7 Phase 1b trial; Additional data to be shared in second half of 2025 LOTIS-5 Phase 3 trial expected to reach prespecified progression-free survival (PFS) events by end of 2025; update to follow once data are available Completed $100 million private placement exte ...

Company Overview - ADC Therapeutics SA is a commercial-stage global leader in the field of antibody drug conjugates (ADCs) [3] - The company is headquartered in Lausanne, Switzerland, with operations in London and New Jersey [5] Upcoming Events - ADC Therapeutics will host a conference call and live webcast on August 12, 2025, at 8:30 a.m. EDT to report financial results for Q2 2025 and provide operational updates [1] Product Development - The company's CD19-directed ADC ZYNLONTA (loncastuximab tesirine-lpyl) has received accelerated approval from the FDA and conditional approval from the European Commission for treating relapsed or refractory diffuse large B-cell lymphoma after two or more lines of systemic therapy [4] - ZYNLONTA is also being developed in combination with other agents and in earlier lines of therapy [4] - ADC Therapeutics is advancing IND-enabling activities for a next-generation PSMA-targeting ADC utilizing a differentiated exatecan-based payload with a novel hydrophilic linker [4]

One other Medical stock that has outperformed the sector so far this year is Alnylam Pharmaceuticals (ALNY) . The stock is up 70.8% year-to-date. For Alnylam Pharmaceuticals, the consensus EPS estimate for the current year has increased 41.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy). To break things down more, ADC Therapeutics SA belongs to the Medical - Biomedical and Genetics industry, a group that includes 490 individual companies and currently sits at #143 in the Zacks I ...