ADC Therapeutics initiated with an Overweight at Stephens on Zynlonta potential

Stephens initiated coverage of ADC Therapeutics (ADCT) with an Overweight rating and $6 price target as the firm is adding to its biotechnology research coverage with a focus on antibody-drug delivery technologies for the treatment of cancers. Zynlonta is the first approved ADC third-line agent for DLBCL and could move into second-line for DLBCL, while other ADC assets in the pipeline could offer upside, but are “early in development,” the analyst tells investors.