Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $23 million, including net product revenues of $17.4 million, consistent with Q1 2024 and an increase from $16.4 million in Q4 2024 [5][17] - Net loss for Q1 2025 was $38.6 million, an improvement from a net loss of $46.6 million in Q1 2024, attributed to higher license revenues and lower expenses [18] - Cash and cash equivalents as of March 31, 2025, were $194.7 million, down from $250.9 million at December 31, 2024, primarily due to net loss from operations [18] Business Line Data and Key Metrics Changes - The company reported $5.6 million in milestone and royalty payments included in total revenue for the quarter [6] - The LOTUS-seven study showed an overall response rate of 95.5% and a complete response rate of 90.9% in 22 efficacy evaluable patients [14] Market Data and Key Metrics Changes - The company is focusing on maintaining its position as a treatment option for third-line plus DLBCL patients, with promising data from the LOTUS-seven study [5][10] - The competitive landscape is highlighted by the potential of ZYNLATA plus glufitamab to be a best-in-class combination in a highly competitive market [6][11] Company Strategy and Development Direction - The company aims to expand the use of ZYNLATA into earlier lines of therapy in DLBCL and indolent lymphomas, believing in the potential for significant revenue growth [10][22] - The strategy includes pursuing regulatory discussions and compendia strategies based on the data from ongoing trials [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming catalysts and the company's cash runway expected to fund operations into the second half of 2026 [10][21] - The management is optimistic about the promising data from ongoing trials and the potential to change treatment paradigms for patients with aggressive lymphoma [15][22] Other Important Information - The LOTUS-five trial is on track to reach the pre-specified number of progression-free survival events by the end of 2025, with top-line data expected thereafter [8][20] - The company is engaged in discussions for potential research collaborations to advance its programs [9][20] Q&A Session Summary Question: Follow-up time for patients and CR conversion times - Management indicated that follow-up assessments are ongoing, with high complete response rates being a strong biomarker for durability [27][28] Question: Competitive strategy and regulatory engagement - The company plans to engage with regulatory authorities once sufficient data from approximately 100 patients is available [30] Question: Expected patient numbers at upcoming conferences - Management confirmed that more patients than the 22 already discussed will be presented at the EHA and ICML conferences, but exact numbers cannot be disclosed [34] Question: Timing for LOTUS-five data readout - The company expects to reach the pre-specified number of PFS events this year, with data readout potentially at the end of this year or early next year [42] Question: Discontinuation of the ADCT-602 program - The discontinuation of the ADCT-602 program has minimal capital implications, allowing focus on advancing other research programs [50][51]

Financial Performance - ZYNLONTA generated net product revenues of $17.4 million for Q1 2025, compared to $17.8 million in Q1 2024[5] - Total revenue for Q1 2025 was $23.033 million, a 27.5% increase from $18.053 million in Q1 2024[22] - Product revenues decreased slightly to $17.404 million from $17.848 million, a decline of 2.5% year-over-year[22] - License revenue and royalties increased to $5.6 million in Q1 2025 from $0.2 million in Q1 2024, including a $5.0 million milestone payment from Health Canada[5] Expenses - Research and Development (R&D) expenses rose to $28.9 million in Q1 2025, up from $25.7 million in Q1 2024, primarily due to increased spending on next-generation ADCs[5] - Selling and Marketing (S&M) expenses decreased to $10.6 million in Q1 2025 from $11.4 million in Q1 2024, attributed to lower marketing costs[5] - General & Administrative (G&A) expenses fell to $10.0 million in Q1 2025 from $12.0 million in Q1 2024, mainly due to reduced professional fees[5] - Total operating expenses for Q1 2025 were $51.497 million, a marginal decrease of 0.3% from $51.666 million in Q1 2024[25] - Share-based compensation expense rose significantly to $2.421 million from $158, a 1,432% increase[25] Net Loss - Net loss for Q1 2025 was $38.6 million, or $0.36 per share, an improvement from a net loss of $46.6 million, or $0.56 per share, in Q1 2024[5] - Adjusted net loss for Q1 2025 was $24.0 million, or $0.22 per share, compared to an adjusted net loss of $31.1 million, or $0.38 per share, in Q1 2024[5] - Net loss for Q1 2025 was $38.602 million, compared to a net loss of $46.606 million in Q1 2024, reflecting an improvement of 17.3%[22] - Adjusted net loss for Q1 2025 was $23.963 million, down from $31.147 million in Q1 2024, indicating a 23.0% reduction[25] Cash Position - Cash and cash equivalents as of March 31, 2025, were $194.7 million, down from $250.9 million as of December 31, 2024, with a cash runway expected to extend into the second half of 2026[6] - Cash and cash equivalents as of March 31, 2025, were $194.701 million, down from $250.867 million at the end of 2024[24] Clinical Trials - LOTIS-7 trial reached 40 patient enrollments, with updates expected in the second half of 2025[3] - ZYNLONTA plus glofitamab demonstrated an overall response rate (ORR) of 95.5% and a complete response (CR) rate of 90.9% in the LOTIS-7 trial[3] Shareholder Information - The weighted average shares outstanding increased to 107,202,374 in Q1 2025 from 82,552,322 in Q1 2024[25] - Total liabilities increased slightly to $510.762 million from $524.622 million, with total shareholders' equity showing a deficit of $238.223 million[24]

1Q 2025 Earnings Call May 14, 2025 Agenda Financial Update Pepe Carmona Chief Financial Officer 01 Introduction Ameet Mallik Chief Executive Officer 02 Chief Medical Officer Clinical Highlights Mohamed Zaki 03 04 Q&A 2 Forward-Looking Statements This presentation and any accompanying oral presentation have been prepared by ADC Therapeutics SA ("ADC Therapeutics", "we" or "us") for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, ...

Company Overview - ADC Therapeutics SA (ADCT) is anticipated to report a year-over-year increase in earnings due to higher revenues for the quarter ended March 2025, with a consensus outlook indicating a quarterly loss of $0.38 per share, reflecting a +32.1% change from the previous year [1][3] - Expected revenues for ADC Therapeutics are projected at $18.15 million, which is a slight increase of 0.6% compared to the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 8.33% higher in the last 30 days, indicating a reassessment by analysts of their initial estimates [4] - The Most Accurate Estimate for ADC Therapeutics aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a positive ESP being a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [6][8] - ADC Therapeutics currently holds a Zacks Rank of 3, making it challenging to predict a definitive earnings beat [11] Historical Performance - In the last reported quarter, ADC Therapeutics was expected to post a loss of $0.35 per share but actually reported a loss of $0.29, resulting in a surprise of +17.14% [12] - Over the past four quarters, the company has surpassed consensus EPS estimates two times [13] Industry Context - In the Zacks Medical - Biomedical and Genetics industry, Cardiff Oncology (CRDF) is expected to report a loss of $0.19 per share for the same quarter, indicating a year-over-year change of +13.6% [17] - Cardiff Oncology's revenue is projected to be $0.17 million, down 19.1% from the previous year, but it has an Earnings ESP of 24.32% and a Zacks Rank of 2, suggesting a higher likelihood of beating the consensus EPS estimate [18]

Core Insights - ADC Therapeutics presented promising data on exatecan-based antibody drug conjugates (ADCs) targeting Claudin-6, PSMA, and ASCT2 at the AACR Annual Meeting 2025, indicating their potential in treating various cancers [1][2][3] Group 1: ADC Therapeutics Overview - ADC Therapeutics is a global leader in the field of antibody drug conjugates (ADCs), focusing on transforming treatment paradigms for patients with hematologic malignancies and solid tumors [5] - The company has received FDA accelerated approval for its CD19-directed ADC ZYNLONTA for treating relapsed or refractory diffuse large B-cell lymphoma [6] Group 2: Research Findings - ADCT-242, targeting Claudin-6, showed potent anti-tumor activity in ovarian and non-small cell lung cancer models, demonstrating good tolerability in preclinical studies [2][8] - ADCT-241, a PSMA-targeting ADC, exhibited antitumor activity in xenograft and patient-derived models, with well-tolerated results in rats and cynomolgus monkeys [2][3] - HuB14-VA-PL2202, an ASCT2-targeting ADC, demonstrated specific antitumor activity in both solid and hematological cancer cell lines, also showing good tolerability in cynomolgus monkeys [3]

Company Overview - ADC Therapeutics SA is a commercial-stage global leader in the field of antibody drug conjugates (ADCs) [3] - The company is focused on transforming treatment paradigms for patients with hematologic malignancies and solid tumors [3] Recent Developments - CEO Ameet Mallik will present a company overview at the 24th Annual Needham Virtual Healthcare Conference on April 8, 2025 [1] - A live webcast of the presentation will be available on the company's website, with a replay accessible for approximately 30 days [2] Product Pipeline - ADC Therapeutics' 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] - The company has multiple ADCs in ongoing clinical and preclinical development [4] Company Operations - ADC Therapeutics is based in Lausanne, Switzerland, with operations in London, the San Francisco Bay Area, and New Jersey [5]

Company Overview - ADC Therapeutics SA is a commercial-stage global leader in the field of antibody drug conjugates (ADCs) [3] - The company is focused on transforming treatment paradigms for patients with hematologic malignancies and solid tumors [3] Recent Developments - CEO Ameet Mallik will present a company overview at the 24th Annual Needham Virtual Healthcare Conference on April 8, 2025, at 8:00 a.m. ET [1] - A live webcast of the presentation will be available on the company's website, with a replay accessible for approximately 30 days [2] Product Pipeline - ADC Therapeutics' 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] - The company has multiple ADCs in ongoing clinical and preclinical development [4] Company Operations - ADC Therapeutics is headquartered in Lausanne, Switzerland, with operations in London, the San Francisco Bay Area, and New Jersey [5]

Revenue Performance - Product revenues, net for the year ended December 31, 2024, were $69.3 million, a slight increase of $0.2 million or 0.3% compared to $69.1 million in 2023[395] - License revenues and royalties increased significantly to $1.6 million in 2024 from $0.5 million in 2023, representing a growth of $1.1 million or 212.7%[397] - Total revenue, net for 2024 was $70.8 million, an increase of $1.3 million or 1.8% from $69.6 million in 2023[393] Operating Expenses - Total operating expenses decreased to $201.5 million in 2024 from $235.5 million in 2023, a reduction of $34.1 million or 14.5%[393] - Research and development expenses were $109.6 million for 2024, down $17.5 million or 13.8% from $127.1 million in 2023[403] - Selling and marketing expenses decreased to $44.0 million in 2024, a reduction of $13.4 million or 23.4% compared to $57.5 million in 2023[408] - General and administrative expenses were $41.9 million for the year ended December 31, 2024, a decrease of $6.5 million, or 13.5%, compared to $48.4 million in 2023[413] Net Loss and Financial Performance - The net loss for 2024 was $157.8 million, a decrease of $82.2 million or 34.2% from a net loss of $240.1 million in 2023[393] - Interest income increased to $12.3 million for the year ended December 31, 2024, an increase of $1.7 million, or 16.4%, from $10.5 million in 2023[415] - Interest expense rose to $50.2 million for the year ended December 31, 2024, an increase of $3.9 million, or 8.4%, compared to $46.3 million in 2023[416] - Income tax expense significantly decreased to $0.2 million for the year ended December 31, 2024, from $39.1 million in 2023, primarily due to a full valuation allowance on deferred tax assets[421] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, were $250.9 million, sufficient to fund operations for at least the next twelve months[426] - Net cash used in operating activities increased to $123.8 million for the year ended December 31, 2024, from $118.7 million in 2023, an increase of $5.1 million[435] - Net cash provided by financing activities was $97.1 million for the year ended December 31, 2024, primarily from the completion of an equity offering[437] Product Development and Strategic Initiatives - ZYNLONTA, the flagship product, received accelerated approval from the FDA and is being expanded into earlier lines of DLBCL and indolent lymphomas[391] - The company is pursuing strategic partnerships and collaborations to maximize the value of its solid tumor program[392] - Research and development expenses for ZYNLONTA specifically were $58.3 million in 2024, down from $68.5 million in 2023, a decrease of $10.2 million or 14.8%[403] Royalty Obligations and Accounting Estimates - Cumulative catch-up adjustment income related to the deferred royalty obligation was $11.2 million for the year ended December 31, 2024, up $6.2 million from $5.0 million in 2023[419] - The deferred royalty obligation involves estimating future royalty payments based on revenue projections, with adjustments made if actual payments differ significantly from estimates[450] - The company uses a Monte Carlo simulation model to estimate the total amount of future royalty payments to HCR, which can vary based on actual net sales of ZYNLONTA[449] - The provision for the discarded drug rebate is recorded in either current or long-term liabilities depending on when refunds are expected to be due[446] - The accounting estimates involve significant uncertainty, and actual results may differ from those estimates under different assumptions[441]

Financial Data and Key Metrics Changes - The company ended 2024 with $251 million in cash and cash equivalents, expected to fund operations into the second half of 2026 [24] - ZYNLONTA net product revenues for Q4 2024 were $16.4 million, slightly down from $16.6 million in Q4 2023, while full-year revenues were $69.3 million compared to $69.1 million in 2023 [25] - The net loss for Q4 2024 was $30.7 million, a significant improvement from a net loss of $85 million in Q4 2023 [26] - For the full year, the net loss was $157.8 million, down from $240.1 million in 2023 [26] - Non-GAAP operating expenses decreased by 15% year-over-year in Q4 2024, contributing to the reduced net loss [25][26] Business Line Data and Key Metrics Changes - ZYNLONTA maintained its position in the third-line-plus DLBCL market, achieving commercial brand profitability [9] - The company reported an overall response rate of 80% and a complete response rate of 50% in the LOTIS-5 trial, indicating strong efficacy [13] - Initial data from LOTIS-7 showed a best overall response rate of 94% and a complete response rate of 72% among relapsed or refractory DLBCL patients [14] Market Data and Key Metrics Changes - The company anticipates a peak revenue opportunity of $600 million to $1 billion in the US for ZYNLONTA, assuming regulatory approval and compendia listing [19][21] - The potential market opportunity for indolent lymphomas is estimated to be between $100 million and $200 million [22] Company Strategy and Development Direction - The company aims to expand the use of ZYNLONTA into earlier lines of DLBCL therapy through ongoing trials [13] - The strategy includes pursuing research collaborations to advance early-stage solid tumor pipelines [29] - The focus remains on hematology, with a disciplined capital allocation strategy to create value [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's path forward, highlighting the importance of upcoming data readouts in 2025 [30] - The competitive landscape is expected to evolve with the introduction of new therapies, but management believes ZYNLONTA will maintain its market position [76] Other Important Information - The company achieved a double-digit reduction in operating expenses for the second consecutive year [12] - Management emphasized the importance of regulatory strategies and compendia listings for future growth [50] Q&A Session Summary Question: Update on LOTIS-7 - The company has not disclosed the specific forum or timing for sharing LOTIS-7 data but is on track to enroll 40 patients in Q2 [42] Question: Impact of ADCETRIS Approval - Management believes the approval of ADCETRIS will have limited impact on ZYNLONTA's market share, as it is likely to replace older regimens rather than significantly affect current usage [44] Question: Regulatory Meetings for LOTIS-7 - Discussions with regulatory authorities are planned for the second half of the year once sufficient data is available [50] Question: Market Opportunity in Indolent Lymphoma - The peak opportunity for indolent lymphomas is estimated to be between $100 million and $200 million [51] Question: LOTIS-5 and LOTIS-7 Strategy - Both LOTIS-5 and LOTIS-7 are seen as complementary approaches to address different patient needs in the DLBCL market [56] Question: Importance of Upcoming Presentations - The upcoming presentations at AACR are expected to provide differentiating data on the company's ADC platforms [60] Question: Competitive Landscape for DLBCL - The introduction of bispecifics has taken about a third of the third-line-plus market, but ZYNLONTA has maintained consistent sales [75] Question: Compendia Listing and Market Penetration - Peak penetration for ZYNLONTA is typically achieved within the first two years post-approval or listing [86]

Financial Data and Key Metrics Changes - The company ended 2024 with $251 million in cash and cash equivalents, expected to fund operations into the second half of 2026 [24] - ZYNLONTA net product revenues in Q4 2024 were $16.4 million, slightly down from $16.6 million in Q4 2023, while full-year revenues were $69.3 million compared to $69.1 million in 2023 [25] - The net loss for Q4 2024 was $30.7 million, a significant improvement from a net loss of $85 million in Q4 2023, and the full-year net loss was $157.8 million compared to $240.1 million in 2023 [26][27] Business Line Data and Key Metrics Changes - ZYNLONTA achieved commercial brand profitability and maintained its position in the competitive third-line-plus DLBCL market [9] - The company reported a 13% year-over-year reduction in operating expenses on a non-GAAP basis, with a 15% decrease in Q4 due to operational efficiencies [25][12] Market Data and Key Metrics Changes - The company is focusing on expanding ZYNLONTA's use in earlier lines of DLBCL therapy, with potential peak revenues estimated between $600 million to $1 billion in the US [19][32] - The LOTIS-5 trial aims to expand ZYNLONTA's market opportunity in the second-line setting, potentially leading to peak sales of $200 million to $300 million [20] Company Strategy and Development Direction - The company is pursuing a strategy to expand ZYNLONTA's usage beyond current indications, focusing on commercialization efforts in the US and research collaborations for early-stage solid tumor pipelines [28][29] - The management is confident in the potential of ZYNLONTA to transform lymphoma treatment paradigms, particularly in indolent lymphomas, with an estimated peak revenue opportunity of $100 million to $200 million [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's path forward, highlighting the importance of upcoming data readouts in 2025 to support ZYNLONTA's expansion strategy [31] - The competitive landscape is expected to evolve with the introduction of new therapies, but management believes the impact will be limited due to the established position of ZYNLONTA [76] Other Important Information - The company achieved a double-digit reduction in operating expenses for the second consecutive year, strengthening its balance sheet through equity financing [12][24] - The management plans to engage regulatory authorities and pursue compendia strategies as data from ongoing trials become available [50] Q&A Session Summary Question: Update on LOTIS-7 - The company has not disclosed the specific forum or timing for sharing LOTIS-7 data but is on track to enroll 40 patients in the second quarter [42] Question: Impact of ADCETRIS Approval - Management believes the approval of ADCETRIS will have limited impact, as physicians have multiple options and may replace older regimens rather than directly compete [44] Question: Regulatory Meetings for LOTIS-7 - Discussions with regulatory authorities are planned once sufficient data is available, likely in the second half of the year [50] Question: Market Opportunity in Indolent Lymphoma - The peak opportunity for indolent lymphomas is estimated to be in the $100 million to $200 million range based on compelling data presented [51] Question: LOTIS-5 and LOTIS-7 Strategy - Both LOTIS-5 and LOTIS-7 are seen as complementary approaches to address different patient needs in the DLBCL market [56] Question: Importance of Upcoming Presentations - Upcoming presentations at AACR are expected to provide differentiating data on the company's ADC platform compared to competitors [60] Question: Compendia Listing and Market Share - Recent additions to NCCN guidelines require approximately 100 patients for compendia listing, which is seen as a benchmark for gaining market share [81] Question: Peak Penetration Timeline - Peak penetration for ZYNLONTA is typically achieved within the first two years post-approval, based on historical trends in the DLBCL setting [86]