Commercial Performance - 2Q 2025 net product revenues reached $18.1 million, a 6.2% increase compared to $17.0 million in the same quarter of 2024 [16, 58] - Total 1H 2025 net product revenue was $35.5 million, up from $34.9 million during the 1H of 2024 [16] Pipeline Progress - LOTIS-7 data showed a 93.3% ORR (Overall Response Rate) and an 86.7% CR (Complete Response) rate across 30 efficacy evaluable patients when ZYNLONTA was combined with glofitamab [16, 53] - Updated MZL IIT data presented at ICML demonstrate an 85% ORR and a 69% CR rate [16] - LOTIS-5 is on track to reach pre-specified PFS (Progression-Free Survival) events by the end of 2025 [16] Corporate Update - The company secured $100 million in private placement, extending the expected cash runway into 2028 [16] - A strategic prioritization was implemented, resulting in a 30% reduction in force and one-time charges of $13.1 million, including $6.7 million in employee severance and $6.4 million in non-cash impairment of assets related to the UK facility closure [16] - The company's cash balance was $264.6 million as of June 30, 2025 [16, 58] LOTIS-7 Trial Safety - In the LOTIS-7 Phase 1b trial, 56.1% of patients experienced Grade 3/4 TEAEs (Treatment-Emergent Adverse Events) [47] - Cytokine Release Syndrome (CRS) of any grade was observed in 39% of patients [49] - ICANS (Immune effector Cell-Associated Neurotoxicity Syndrome) of any grade was observed in 7.3% of patients [49] ZYNLONTA Market Potential - ZYNLONTA has a U S peak revenue potential of $600 million to $1 billion in DLBCL (Diffuse Large B-Cell Lymphoma) and indolent lymphomas [21, 22]

ZYNLONTA® in combination with glofitamab (COLUMVI®) demonstrated overall response rate (ORR) of 93.3% and a complete response (CR) rate of 86.7% in LOTIS-7 across 30 efficacy evaluable patients Expansion to 100 r/r DLBCL patients underway in LOTIS-7 Phase 1b trial; Additional data to be shared in second half of 2025 LOTIS-5 Phase 3 trial expected to reach prespecified progression-free survival (PFS) events by end of 2025; update to follow once data are available Completed $100 million private placement exte ...

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]

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]