ADC Therapeutics Ltd ((ADCT)) has held its Q3 earnings call. Read on for the main highlights of the call.
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ADC Therapeutics Ltd’s recent earnings call painted a picture of both stability and challenges. The company reported stable revenues and promising clinical trial outcomes, underscored by a robust financial position. However, these positives were tempered by a decline in year-over-year revenues and a continued net loss, reflecting a mixed sentiment overall.
Stable Net Product Revenues
Net product revenues for ADC Therapeutics in Q3 2025 were reported at $15.8 million. This figure highlights the stability in customer ordering patterns, aligning with the company’s quarterly run rate over the past two years. Despite the decline from the previous year’s $18 million, the consistent revenue stream indicates a steady market demand.
Promising Clinical Trial Results
The LOTUS VII trial results were a highlight, with ZENLATA plus glafitamab achieving a 93.3% overall response rate and an 86.7% complete response rate among 30 efficacy evaluable patients. These promising outcomes underscore the potential of ADC Therapeutics’ clinical pipeline.
Strong Financial Position
ADC Therapeutics has fortified its financial standing by securing a $60 million private placement, extending its cash runway to at least 2028. With cash and cash equivalents reaching approximately $292.3 million, the company is well-positioned to support its strategic initiatives.
Encouraging Follicular Lymphoma Data
In a Phase II IIT, ZENLATA combined with rituximab demonstrated impressive results in relapsed/refractory follicular lymphoma, with a 98.2% overall response rate and an 83.6% complete response rate. This data is encouraging for the company’s future therapeutic developments.
Decline in Net Product Revenues
Despite stable revenue patterns, ADC Therapeutics experienced a decline in net product revenues from $18 million in Q3 2024 to $15.8 million in Q3 2025. This decrease highlights the challenges the company faces in maintaining its revenue growth trajectory.
Ongoing Net Loss
The company reported a net loss of $41 million for Q3 2025, a slight improvement from the $44 million loss in Q3 2024. While the loss remains significant, the reduction indicates progress in managing operational expenses.
Forward-Looking Guidance
Looking ahead, ADC Therapeutics provided significant guidance, with plans to share additional data on key ZENLATA trials, specifically LOTUS VII and LOTUS V, in the coming months. The company anticipates top-line results for LOTUS V in 2026, with potential peak annual revenues of $200-$300 million by expanding into the second-line setting. The strategic focus on ZENLATA’s therapeutic reach could achieve peak annual revenues of $600 million to $1 billion in the U.S.
In summary, ADC Therapeutics Ltd’s earnings call reflects a company navigating both opportunities and challenges. While stable revenues and promising clinical results offer optimism, the decline in year-over-year revenues and ongoing net losses present hurdles. However, with a strong financial position and strategic focus on expanding its therapeutic reach, ADC Therapeutics is poised for potential growth in the coming years.