ADC Therapeutics(ADCT)2024-11-07 15:44Revenue Growth - Product revenues, net, increased to $18.0 million for the three months ended September 30, 2024, compared to $14.3 million for the same period in 2023, representing a 26.3% increase [118]. - License revenues and royalties rose to $448 thousand for the three months ended September 30, 2024, up from $226 thousand in the same period of 2023, marking a 98.2% increase [120]. - Total revenue, net, reached $18.5 million for the three months ended September 30, 2024, compared to $14.5 million for the same period in 2023, reflecting a 27.4% increase [116]. - Total revenue increased by $1.2 million or 2.2%, from $52.8 million in the nine months ended September 30, 2023 to $53.9 million in the same period of 2024 [146]. - Product revenues, net, increased by $0.5 million or 0.9%, from $52.4 million in the nine months ended September 30, 2023 to $52.9 million in the same period of 2024, primarily due to higher pricing [147]. - License revenues and royalties surged by $0.7 million or 194.3%, from $0.4 million in the nine months ended September 30, 2023 to $1.0 million in the same period of 2024 [149]. Expenses and Losses - Research and development expenses totaled $32.5 million for the three months ended September 30, 2024, an increase of $5.4 million or 20.0% from $27.1 million in the same period of 2023 [124]. - Cost of product sales increased to $0.9 million for the three months ended September 30, 2024, compared to $0.2 million in the same period of 2023, a significant increase of 309.1% [122]. - The net loss for the three months ended September 30, 2024, was $43.9 million, a decrease of $2.8 million or 5.9% from a net loss of $46.7 million in the same period of 2023 [116]. - Loss from operations was $35.6 million for the three months ended September 30, 2024, slightly improved from a loss of $36.1 million in the same period of 2023, a change of 1.6% [116]. - Research and development expenses for ZYNLONTA were $18.2 million for the three months ended September 30, 2024, compared to $17.1 million in the same period of 2023, an increase of $1.1 million [125]. - Selling and marketing expenses decreased by $3.1 million or 22.3%, from $13.7 million in Q3 2023 to $10.7 million in Q3 2024, primarily due to reduced marketing initiatives in the U.S. [132]. - General and administrative expenses increased by $0.4 million or 3.9%, from $9.6 million in Q3 2023 to $10.0 million in Q3 2024, driven by higher employee expenses and recruitment costs [136]. - Interest expense increased by $0.3 million or 2.3%, from $12.8 million in Q3 2023 to $13.1 million in Q3 2024, mainly due to higher accretion of deferred royalty obligations [139]. - The net loss decreased by $27.9 million or 18.0%, from $155.0 million in the nine months ended September 30, 2023 to $127.1 million in the same period of 2024 [146]. - The loss from operations improved by $27.8 million or 22.1%, from $126.0 million in the nine months ended September 30, 2023 to $98.2 million in the same period of 2024 [146]. - Selling and marketing expenses decreased to $32.8 million for the nine months ended September 30, 2024, from $43.5 million in 2023, a reduction of $10.8 million or 24.7% [162]. - Interest expense increased to $38.3 million for the nine months ended September 30, 2024, from $33.4 million in 2023, an increase of $4.9 million or 14.6% [168]. - General and administrative expenses were $32.3 million for the nine months ended September 30, 2024, down from $37.1 million in 2023, a decrease of $4.9 million or 13.1% [165]. Cash Flow and Financing - As of September 30, 2024, the company had cash and cash equivalents of $274.3 million, sufficient to fund operations for at least the next twelve months [176]. - For the nine months ended September 30, 2024, net cash used in operating activities was $102.0 million, an increase of $14.9 million compared to $87.1 million for the same period in 2023 [181]. - The company completed an underwritten offering in May 2024, resulting in net proceeds of approximately $97.4 million [179]. - Net cash provided by financing activities was $98.2 million for the nine months ended September 30, 2024, primarily from the 2024 Equity Offering [183]. - Cash used in investing activities decreased to $0.8 million for the nine months ended September 30, 2024, from $2.9 million in the same period in 2023, reflecting timing of property and equipment purchases [183]. - The net change in cash and cash equivalents for the nine months ended September 30, 2024, was a decrease of $4.6 million, an improvement compared to a decrease of $16.1 million in the same period in 2023 [180]. Strategic Focus - The company is focusing on growing ZYNLONTA in the 3L+ DLBCL setting and advancing its pipeline and ADC platform [179]. - The company is continuously exploring strategic collaborations and licensing opportunities for clinical development and commercialization of ZYNLONTA [177]. - The company has filed a prospectus for an at-the-market offering program with an aggregate offering price of $100 million, although no shares were sold under the program for the three months ended September 30, 2024 [179].