ADC Therapeutics (NYSE:ADCT) FY Conference Transcript

Summary of ADC Therapeutics FY Conference Call Company Overview - Company: ADC Therapeutics (NYSE:ADCT) - Product: Zynlonta, an approved CD19-directed antibody-drug conjugate (ADC) for treating DLBCL (Diffuse Large B-Cell Lymphoma) in the third-line setting [2][3] Key Points and Arguments Product Development and Market Position - Zynlonta is currently approved for third-line plus DLBCL and is being expanded into earlier lines and indolent lymphomas [2][3] - The company achieved significant milestones in 2025, including trial progress and capital restructuring [2] - The median time to response for Zynlonta is 1.5 months, with a 48% overall response rate and a 25% complete response (CR) rate [4][3] - The product has a manageable side effect profile, with no irreversible toxicities, making it convenient for administration [4][3] Market Dynamics - In the DLBCL market, complex therapies (like CAR-T and bispecific therapies) hold a 60% market share, while broadly accessible therapies account for 40% [6] - Zynlonta currently holds a 10% share of the total market, primarily in the third-line setting [6] - The second-line therapy market is expected to grow, with 65% of patients still receiving broadly accessible therapies [7] Clinical Trials and Efficacy - The LOTIS-5 trial (Zynlonta plus Rituximab) is a key study expected to read out in Q2 2026, with a primary endpoint of progression-free survival (PFS) [11][27] - The LOTIS-7 trial (Zynlonta plus Glofitamab) is also underway, showing promising early results with a 78% CR rate in initial patients [20][42] - The company aims to capture a larger market share by demonstrating superior efficacy in both complex and broadly accessible therapy segments [36][37] Revenue Potential - Current sales for Zynlonta are approximately $73 million, with potential to grow to $200-$300 million with LOTIS-5 and up to $500-$800 million with LOTIS-7 [15][26] - The peak revenue potential in the U.S. is estimated to be between $600 million and $1 billion [26] Future Milestones - Key upcoming milestones include: - Completion of enrollment for LOTIS-7 in the first half of 2026 - Top-line results for LOTIS-5 expected in Q2 2026 - Regulatory submissions anticipated in mid-2027 [27][28] Additional Important Information - The company is focusing on expanding Zynlonta's use in indolent lymphomas, where there is a high unmet need [23][25] - The competitive landscape includes a mix of therapies, with Zynlonta positioned to replace chemotherapy in treatment regimens [39][40] - Physicians appreciate Zynlonta for its rapid action, durability of response, and safety profile, which is crucial for maintaining market share despite increasing competition [33][35] This summary encapsulates the key insights from the ADC Therapeutics FY Conference Call, highlighting the company's strategic direction, product potential, and market dynamics.