Core Viewpoint - ADC Therapeutics SA (ADCT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for ADC Therapeutics suggest an improvement in the company's underlying business, likely leading to increased stock prices as investors respond positively [5][10]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - ADC Therapeutics' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9][10]. Earnings Estimate Revisions for ADC Therapeutics - For the fiscal year ending December 2025, ADC Therapeutics is expected to earn -$1.55 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.8% over the past three months [8].

Summary of ADC Therapeutics Fireside Chat Company Overview - **Company**: ADC Therapeutics - **Key Product**: Zynlonta, an approved drug for third-line DLBCL (Diffuse Large B-Cell Lymphoma) Industry Context - **Market Dynamics**: The DLBCL treatment landscape includes CAR-T therapies, bispecific antibodies, and other ADCs. The market is divided into complex therapies (e.g., CAR-T, bispecifics) and broadly accessible therapies. Key Points and Arguments Zynlonta's Current Position - Zynlonta is one of the few drugs approved as a single agent in DLBCL, with stable sales and a 50/50 usage split between academic and community settings [3][4] - The drug is well-regarded by physicians, particularly in academic centers [4] Future Label Expansion - ADC Therapeutics is focusing on label expansion into earlier lines of therapy, leveraging strong academic support [5] - The LOTIS-5 study, a phase 3 trial for second-line DLBCL, is well-powered with 420 patients and shows promising early data with an 80% overall response rate and 50% complete response rate [6][10] Competitive Landscape - The second-line DLBCL market is competitive, with various therapies available. ADC Therapeutics aims to position Zynlonta as a leading option among broadly accessible therapies [10][11] - The company believes that both complex and broadly accessible therapies will coexist, with Zynlonta fitting into the latter category [11][12] LOTIS-7 Study - The LOTIS-7 study combines Zynlonta with glofitamab, showing promising initial data. The company is currently in the dose expansion phase [15][16] - The higher dose of Zynlonta (150 micrograms) was selected for expansion due to faster time to complete response and lower rates of cytokine release syndrome (CRS) [19][20] Commercial Opportunities - The potential peak revenue for DLBCL with approval and compendia listing is estimated at $500-$800 million, while indolent lymphoma could add an additional $100-$200 million [37] - ADC Therapeutics has a strong sales infrastructure covering 90% of the total opportunity, with only marginal expansions needed for new indications [38] Pipeline Developments - ADC Therapeutics is also developing a PSMA-targeted ADC, with plans to partner the asset for phase one development [40] Upcoming Data and Expectations - The company anticipates updates on LOTIS-5 and LOTIS-7 studies in the near future, which are expected to drive increased potential for Zynlonta [41] Additional Important Information - The company is focused on relapsed refractory follicular lymphoma and marginal zone lymphoma, with promising response rates reported [34] - Upcoming presentations at ASH will include data on Zynlonta in various lymphoma settings, including consolidation therapy post-CAR-T [35]

Financial Performance - Product revenues for Q3 2025 were $15.75 million, a decrease of 12.6% from $18.02 million in Q3 2024[130] - Total revenue for Q3 2025 was $16.43 million, down 11.0% from $18.46 million in Q3 2024[130] - The net loss for Q3 2025 was $40.97 million, a reduction of 6.8% compared to a net loss of $43.97 million in Q3 2024[130] - Total revenue for the nine months ended September 30, 2025, was $58.3 million, an increase of 8.1% from $53.9 million in the same period of 2024[154] - Product revenues, net, were $51.2 million for the nine months ended September 30, 2025, a decrease of $1.7 million, or 3.1%, compared to $52.9 million for the same period in 2024[156] - License revenues and royalties increased to $7.1 million for the nine months ended September 30, 2025, from $1.0 million in the same period of 2024, an increase of $6.0 million[159] Expenses and Costs - Operating expenses decreased by 12.3% to $47.40 million in Q3 2025 from $54.03 million in Q3 2024[130] - Research and development expenses decreased to $26.8 million in Q3 2025, down 17.5% from $32.5 million in Q3 2024, driven by reduced spending on discontinued programs[140] - Selling and marketing expenses remained stable at $10.7 million for both Q3 2024 and Q3 2025[142] - General and administrative expenses decreased to $8.3 million in Q3 2025, down 16.8% from $10.0 million in Q3 2024, primarily due to lower professional fees and employee expenses[144] - Restructuring, impairment, and other related costs were $0.4 million in Q3 2025, compared to no such costs in Q3 2024[146] - Research and development expenses were $85.8 million for the nine months ended September 30, 2025, an increase of $3.3 million, or 4.0%, compared to $82.5 million for the same period in 2024[164] - Selling and marketing expenses decreased to $31.4 million for the nine months ended September 30, 2025, a decrease of $1.4 million, or 4.2%, from $32.8 million in 2024[167] - General and administrative expenses were $27.1 million for the nine months ended September 30, 2025, a decrease of $5.2 million, or 16.0%, compared to $32.3 million for the same period in 2024[169] - Restructuring, impairment, and other related costs amounted to $13.5 million for the nine months ended September 30, 2025, with $6.2 million in severance costs and $6.4 million in impairment of long-lived assets[171] Cash Flow and Financing - The company raised $100 million in gross proceeds from a private placement on June 16, 2025, with net proceeds of $93.1 million after transaction costs[119] - A second private placement on October 27, 2025, generated gross proceeds of $60 million, with net proceeds of approximately $57.6 million after costs[120] - Net cash used in operating activities was $110.1 million, an increase of $8.1 million compared to $102.0 million for the same period in 2024[185] - Net cash provided by financing activities was $93.9 million for the nine months ended September 30, 2025, primarily from the June 2025 private placement, compared to $98.2 million for the same period in 2024[187] - The company completed a Private Placement in October 2025, generating net proceeds of approximately $57.6 million to support the expansion of ZYNLONTA[178] - The company completed a $60 million private placement on October 12, 2025, selling 11,250,000 common shares at $4.00 per share, resulting in net proceeds of approximately $57.6 million[181] Strategic Focus and Restructuring - The company is focusing resources on expanding ZYNLONTA and advancing a next-generation PSMA-targeting ADC following a strategic restructuring plan[118] - The company has reduced its global workforce by approximately 30% as part of the restructuring efforts[118] - The company expects to continue incurring substantial expenses in research and development and marketing, particularly for ZYNLONTA in the 3L+ DLBCL setting[183] Other Financial Metrics - Interest income decreased to $2.5 million in Q3 2025, down 28.2% from $3.4 million in Q3 2024, due to lower yields and average cash balances[148] - Interest expense increased to $13.4 million in Q3 2025, up 2.1% from $13.1 million in Q3 2024, primarily due to higher accretion of deferred royalty obligations[149] - Cost of product sales rose to $1.2 million in Q3 2025, an increase of 41.2% from $0.9 million in Q3 2024, mainly due to inventory write-downs[137] - Cost of product sales decreased to $4.1 million for the nine months ended September 30, 2025, down $0.5 million, or 10.5%, from $4.6 million in 2024[161] - Interest income was $6.5 million for the nine months ended September 30, 2025, a decrease of $3.2 million, or 33.0%, from $9.6 million in 2024[173] Cash Position - As of September 30, 2025, the company had cash and cash equivalents of $234.7 million, sufficient to fund operations for at least the next twelve months[178] - Cash used to fund operating expenses is influenced by the timing of payments and collections related to ZYNLONTA sales[183] - The company has no off-balance sheet arrangements as of the reporting date[188] - The company recorded a liability of $0.8 million related to the termination of a UK facility lease as part of the 2025 restructuring[189] - The company experienced a $4.0 million increase in annual bonus and retention payments during the nine months ended September 30, 2025[185]

Company Performance - ADC Therapeutics reported a quarterly loss of $0.3 per share, better than the Zacks Consensus Estimate of a loss of $0.4, and an improvement from a loss of $0.42 per share a year ago, resulting in an earnings surprise of +25.00% [1] - The company posted revenues of $16.43 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.03%, although this represents a decline from year-ago revenues of $18.46 million [2] - Over the last four quarters, ADC Therapeutics has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Outlook - ADC Therapeutics shares have increased approximately 103% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.37 on revenues of $19.15 million, and for the current fiscal year, it is -$1.67 on revenues of $77.13 million [7] Industry Context - The Medical - Biomedical and Genetics industry, to which ADC Therapeutics belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - In Q3 2025, net product revenues were $15.8 million, down from $18 million in Q3 2024, reflecting variability in customer ordering patterns [17][19] - Total operating expenses were $45 million on a non-GAAP basis, a 12.1% decrease year-over-year, primarily due to lower R&D expenses [18] - The net loss for Q3 2025 was $41 million, or $0.30 per share, compared to a net loss of $44 million, or $0.42 per share, in Q3 2024 [19] - Cash and cash equivalents at the end of Q3 2025 were $234.7 million, down from $250.9 million at the end of 2024, but increased to approximately $292.3 million post a $60 million financing [20] Business Line Data and Key Metrics Changes - Xelanta continues to be positioned as a differentiated treatment option for third-line plus DLBCL patients, with ongoing trials expected to yield additional data [5][6] - The company is advancing its PSMA-targeting ADC, with IND-enabling activities on track for completion by year-end [6] Market Data and Key Metrics Changes - The treatment landscape for DLBCL is evolving, with a 60/40 split between complex therapies and broadly accessible therapies [11] - The company anticipates that Xelanta could achieve peak annual revenues of $600 million to $1 billion in the U.S. by expanding into earlier lines of therapy [9][10] Company Strategy and Development Direction - The company aims to expand Xelanta's use into earlier lines of therapy for DLBCL and into indolent lymphomas, with a focus on maintaining a competitive edge in the market [8][10] - The strategy includes leveraging data from ongoing trials (LOTIS-5 and LOTIS-7) to support regulatory submissions and enhance market penetration [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to invest further in Xelanta, anticipating advancements into earlier lines of therapy and additional indications [8][23] - The management highlighted the potential for Xelanta to transform the treatment paradigm for lymphoma, particularly with promising data from ongoing trials [10][14] Other Important Information - The company secured a $60 million private placement, extending its cash runway to at least 2028, which supports its strategic initiatives [7][20] - The company plans to provide updates on key trials and data catalysts throughout 2025 and 2026 [20][21] Q&A Session Summary Question: Can you frame how many patients we might get later this quarter? - The company is still targeting approximately 100 patients for enrollment, which is expected to occur quicker than originally anticipated [24][25] Question: When should we expect to see an inflection point for Xelanta sales? - The company expects to share interim data for LOTIS-7 later this year and top-line results for LOTIS-5 in the first half of 2026, with revenue ramp-up anticipated post-approval in the first half of 2027 [28][29][30] Question: Would you consider pursuing Xelanta in the front-line DLBCL setting? - The company is monitoring the front-line setting closely but does not plan to fund a phase three study independently [32][33] Question: How do you view the split of community and academic therapies? - The company does not see a strict division between community and academic settings, as both can administer complex therapies depending on patient suitability [36][37][40] Question: How would an increase in penetration in the second or third line setting affect Xelanta revenues? - The company estimates that maintaining a 10% share in the second line could increase revenues from a $70 million run rate to over $200 million [42][44]

3Q 2025 Earnings Call November 10, 2025 Agenda 01 Introduction Ameet Mallik Chief Executive Officer 03 Chief Financial Officer Financial Update Pepe Carmona 04 Q&A 2 Forward-Looking Statements 02 Clinical Highlights Mohamed Zaki Chief Medical Officer 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 construe ...

Core Insights - ADC Therapeutics is advancing its clinical programs for ZYNLONTA, with updated data from LOTIS-7 expected by the end of 2025 and topline results from LOTIS-5 anticipated in the first half of 2026 [1][5][2] Financial Results - For Q3 2025, net product revenues were $15.8 million, a decrease from $18.0 million in Q3 2024. Year-to-date revenues were $51.2 million compared to $52.9 million for the same period in 2024 [4][19] - Research and Development (R&D) expenses for Q3 2025 were $26.8 million, down from $32.5 million in Q3 2024. Year-to-date R&D expenses increased to $85.8 million from $82.5 million in 2024 [4][19] - Selling and Marketing (S&M) expenses remained stable at $10.7 million for Q3 2025, with a slight decrease in year-to-date expenses to $31.4 million from $32.8 million in 2024 [4][19] - General and Administrative (G&A) expenses decreased to $8.3 million for Q3 2025 from $10.0 million in Q3 2024, and year-to-date G&A expenses were $27.1 million compared to $32.3 million in 2024 [4][19] - The net loss for Q3 2025 was $41.0 million, or $0.30 per share, an improvement from a net loss of $44.0 million, or $0.42 per share, in Q3 2024. Year-to-date net loss was $136.2 million, compared to $127.1 million in 2024 [4][19] Operational Updates - The company completed a $60 million PIPE financing, with net proceeds of approximately $57.6 million expected to fund the commercial expansion of ZYNLONTA [2][5] - Updated data from the Phase 2 investigator-initiated trial of ZYNLONTA in r/r follicular lymphoma showed an overall response rate of 98.2% and a complete response rate of 83.6% [5][4] - IND-enabling activities for a PSMA-targeting ADC are ongoing, with completion expected by the end of 2025 [5][4] Future Outlook - Multiple clinical catalysts are anticipated across LOTIS-7, LOTIS-5, and ongoing Phase 2 IITs, with the first data readout expected before the end of 2025 [2][5] - The company plans to engage with the FDA once sufficient data from LOTIS-7 is available, with potential regulatory submissions and approvals expected in 2027 [5][4]

Core Insights - ADC Therapeutics SA is a global leader in antibody drug conjugates (ADCs) and will host a conference call on November 10, 2025, to report Q3 2025 financial results and operational updates [1][2]. Company Overview - ADC Therapeutics is focused on transforming treatment for patients through its portfolio, including ZYNLONTA (loncastuximab tesirine-lpyl) and an early-stage PSMA-targeting ADC [3]. - The company is headquartered in Lausanne, Switzerland, with operations in London and New Jersey, emphasizing innovation in ADC development from clinical to manufacturing and commercialization [5]. Product Development - ZYNLONTA 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]. - ADC Therapeutics is also developing a next-generation PSMA-targeting ADC that utilizes a differentiated exatecan-based payload with a novel hydrophilic linker [4].

Group 1 - ADC Therapeutics (ADCT) is a biotech firm focused on developing Antibody Drug Conjugates (ADCs) for cancer therapy, utilizing proprietary PBD technology to enhance treatment efficacy while minimizing damage to healthy tissue [4] - On October 16, H.C. Wainwright reaffirmed its Buy rating on ADC Therapeutics but lowered the price target from $8 to $7 following the company's announcement of a $60 million PIPE financing deal [1][2] - The PIPE financing involves the sale of 11.3 million common shares at $4.00 each and pre-funded warrants for 3.8 million shares at $3.90 each, with net proceeds expected to total approximately $57.6 million after fees and expenses [2] Group 2 - The financing strengthens ADC Therapeutics' balance sheet, increasing its pro forma cash position to an estimated $292.3 million [3] - The company anticipates reporting $15.8 million in net product revenue from ZYNLONTA sales for Q3 2025, with $234.7 million in cash and equivalents as of September 30 [3]

Group 1 - ADC Therapeutics (ADCT) is recognized as a promising long-term penny stock with significant upside potential [1] - H.C. Wainwright analyst Robert Burns has lowered the price target for ADC Therapeutics from $8 to $7 while maintaining a Buy rating [1][2] - The price target adjustment follows a $60 million private placement financing announced on October 12, which is expected to close on October 27 [2] Group 2 - The proceeds from the private placement will support the commercial expansion of ZYNLONTA, a treatment for adults with relapsed B-cell lymphoma [2] - The financing is also aimed at strengthening the company's balance sheet and positioning it for long-term growth, with potential plans for a ZYNLONTA relaunch in 2027 [2] - ADC Therapeutics specializes in antibody drug conjugate technology, focusing on transforming treatment paradigms for patients with hematologic malignancies and solid tumors [3]