ADC Therapeutics(US:ADCT)2023-08-07 16:00Revenue and Sales Performance - Total revenue for Q2 2023 was $19.283 million, a 11.5% increase from $17.291 million in Q2 2022[4] - Product revenues for the first half of 2023 reached $38.150 million, up 12.5% from $33.789 million in the same period last year[4] - Product revenue from ZYNLONTA for the three months ended June 30, 2023, was KUSD 19,197, an increase of 11.1% compared to KUSD 17,291 for the same period in 2022[45] - For the six months ended June 30, 2023, product revenue from ZYNLONTA was KUSD 38,150, up 12.5% from KUSD 33,789 in the prior year[45] - Total revenue for the six months ended June 30, 2023, was KUSD 38,275, a decrease of 40.1% compared to KUSD 63,789 for the same period in 2022[45] Financial Performance - Net loss for Q2 2023 was $47.117 million, compared to a net loss of $64.374 million in Q2 2022, reflecting a 26.9% improvement[4] - The company reported a loss before taxes of $53.727 million for Q2 2023, down from a loss of $65.321 million in Q2 2022[4] - For the period ending June 30, 2023, the company reported a loss of $106,543K, compared to a loss of $81,035K for the same period in 2022, representing a 31.5% increase in losses year-over-year[20] - The company reported a total comprehensive loss of $(106,933)K for the period, compared to $(61,139)K for the same period in 2022, reflecting a 75.1% increase in comprehensive losses[17] Expenses and Cost Management - Research and development expenses decreased to $31.944 million in Q2 2023 from $48.537 million in Q2 2022, representing a 34.1% reduction[4] - Share-based compensation expense decreased to $9,192K for the six months ended June 30, 2023, down from $27,216K in the prior year, indicating a 66.1% reduction[20] - Sales and marketing (S&M) expenses decreased to KUSD 14,456 for the three months ended June 30, 2023, down 18% from KUSD 17,659 in the prior year[55] - General and administrative (G&A) expenses fell to KUSD 11,353 for the three months ended June 30, 2023, a reduction of 38% from KUSD 18,240 in the same quarter of 2022[55] - Total operating expenses for the three months ended June 30, 2023, were KUSD 59,072, down 32% from KUSD 86,702 in the same period of 2022[55] Cash and Liquidity - Cash and cash equivalents increased to $347.510 million as of June 30, 2023, from $326.441 million at the end of 2022[10] - The company utilized $45,920K in operating activities for the six months ended June 30, 2023, an improvement compared to $70,208K used in the same period of 2022, showing a 34.7% reduction in cash used[20] - The company experienced a decrease in accounts receivable, netting $49,089K for the period, compared to $9,355K in the prior year, indicating improved cash collection[20] Assets and Liabilities - Total assets decreased to $507.302 million as of June 30, 2023, down from $529.168 million at the end of 2022[10] - Total liabilities increased to $515.891 million as of June 30, 2023, compared to $440.441 million at the end of 2022[10] - The accumulated losses reached $1.187 billion as of June 30, 2023, compared to $1.080 billion at the end of 2022[10] - Total equity as of June 30, 2023, was $(8,589)K, a decrease from $115,346K as of June 30, 2022, indicating a significant decline in equity[17] Investments and Financing - The company received an upfront payment of USD 30 million from MTPC for the exclusive license agreement for ZYNLONTA in Japan[50] - The Company is eligible to receive up to USD 382.5 million in milestones from Sobi, with USD 50 million recognized in December 2022[51] - The total liability related to the royalty purchase agreement increased to KUSD 306,012 as of June 30, 2023, following additional proceeds of USD 75 million received in June 2023[121] Shareholder and Equity Information - The company recognized share-based compensation expense of KUSD 1,010 for the three months ended June 30, 2023, compared to KUSD 13,818 for the same period in 2022[105] - The Equity Incentive Plan 2019 saw an increase in share options from 8,066,461 in June 30, 2022, to 11,293,279 in June 30, 2023[136] - The number of outstanding warrants as of June 30, 2023, was 4,940,135, with no outstanding warrants reported in the previous year[136] Other Financial Metrics - Interest income increased significantly to KUSD 2,372 for the three months ended June 30, 2023, compared to KUSD 16 in the same period of 2022[60] - Financial expenses rose to KUSD 15,857 for the three months ended June 30, 2023, compared to KUSD 8,801 in the same period of 2022, marking an increase of 80%[61] - The company recognized impairment charges of KUSD 726 and KUSD 872 for inventory during the three and six months ended June 30, 2023, respectively[69] - The company recorded a cumulative catch-up adjustment of USD 5.3 million as financial expense for the six months ended June 30, 2023, related to the royalty purchase agreement[124]