ADC Therapeutics(US:ADCT)2025-11-10 21:33Financial 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]