ADC Therapeutics (ADCT) AI Stock Analysis

• Market Cap: $437.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: 6.35%
• EPS Growth: 39.57%
• Country: US
• Employees: 263
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.30
• Shares Outstanding: 123,877,110
• 10 Day Avg. Volume: 2,177,579
• 30 Day Avg. Volume: 1,256,694
• PEG Ratio: 0.03
• Price to Book (P/B): -0.95
• Price to Sales (P/S): 2.73
• P/FCF Ratio: -1.55
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 10.22
• Enterprise Value/Gross Profit: 11.02
• Enterprise Value/Ebitda: -6.77
• 1Y Price Target: $7.33
• Price Target Upside: 108.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -1.44
• Revenue Forecast (FY): $76.65M

• Rating: 50 Neutral
• Price Target: $4.00 ▲(13.96% Upside)

ADC Therapeutics' overall stock score is primarily impacted by its financial instability, with persistent losses and negative equity. While technical analysis and valuation suggest caution, the earnings call and corporate events provide some optimism with promising clinical results and strategic financial moves.

Positive Factors

Promising Clinical Trials

The successful LOTIS-7 trial results enhance ADC Therapeutics' product pipeline, potentially increasing market share and revenue through effective therapies.

Strategic Financial Moves

The $60 million private placement strengthens ADC Therapeutics' financial position, extending its cash runway to 2028, supporting long-term growth initiatives.

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management, allowing ADC Therapeutics to potentially reinvest in R&D and expand its product offerings.

Negative Factors

Financial Instability

Ongoing financial instability with negative equity and persistent losses poses risks to ADC Therapeutics' long-term viability and ability to fund operations.

Cash Flow Challenges

Negative cash flow indicates operational inefficiencies, limiting ADC Therapeutics' ability to invest in growth and manage financial obligations effectively.

Decline in Revenue

A decline in revenue reflects challenges in maintaining sales momentum, potentially impacting ADC Therapeutics' market position and financial health.

ADC Therapeutics Business Overview & Revenue Model

Company Description

ADC Therapeutics SA, a commercial-stage biotechnology company, develops antibody drug conjugates (ADC) for patients suffering from hematological malignancies and solid tumors. Its flagship product ZYNLONTA that is in Phase II clinical trial for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) and follicular lymphoma; Phase III clinical trial in combination with rituximab to treat relapsed or refractory DLBCL in second-line transplant-ineligible patients; and Phase I clinical trial for treatment of relapsed or refractory non-hodgkin lymphoma (NHL). The company is also developing camidanlumab tesirine, an ADC that has completed Phase I clinical trial to treat relapsed or refractory NHL; in Phase II clinical trial in relapsed or refractory hodgkin lymphoma; and in Phase Ib clinical trial for selected advanced solid tumors. In addition, it develops ADCT-602, which is in Phase Ia clinical trial for treatment of acute lymphoblastic leukemia; ADCT-601 and ADCT-901 that are in Phase Ia clinical trial for treatment of various solid tumors; and preclinical product candidates, including ADCT-701 and ADCT-901 for the treatment of solid tumors. It has a collaboration and license agreement with Genmab A/S, Bergenbio AS, Synaffix B.V., Mitsubishi Tanabe Pharma Corporation, Overland Pharmaceuticals, and MedImmune Limited. ADC Therapeutics SA was incorporated in 2011 and is headquartered in Epalinges, Switzerland.

How the Company Makes Money

ADC Therapeutics generates revenue primarily through the commercialization of its approved products, which include ADCs that are sold to healthcare providers and institutions. The company also earns income from strategic partnerships and collaborations with pharmaceutical companies, which may include upfront payments, milestone payments based on the achievement of specific development goals, and royalties on product sales. Additionally, the company may receive funding from government grants and other sources to support its research and development activities. As ADCT continues to advance its pipeline and achieve regulatory approvals, it aims to increase its sales and revenue through the launch of new therapies.

ADC Therapeutics Financial Statement Overview

Summary

ADC Therapeutics faces significant financial challenges, with strong gross margins overshadowed by persistent losses and negative equity. The company struggles with profitability and cash flow, reflecting operational inefficiencies and financial instability.

Income Statement

ADC Therapeutics shows a high gross profit margin of 93.37% TTM, indicating efficient cost management relative to revenue. However, the company struggles with profitability, as evidenced by a negative net profit margin of -220.00% TTM and negative EBIT and EBITDA margins. Revenue growth is minimal at 1.89% TTM, reflecting challenges in expanding sales.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity and a concerning debt-to-equity ratio of -0.59 TTM. The return on equity is negative, indicating losses relative to shareholder investments. The equity ratio is also negative, highlighting a precarious financial position.

Cash Flow

Cash flow analysis shows a negative operating cash flow and free cash flow, with a slight deterioration in free cash flow growth at -5.55% TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly positive, suggesting some alignment between cash flow and reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.21M	70.84M	69.56M	209.91M	33.92M	0.00
Gross Profit	69.74M	64.89M	67.03M	206.61M	32.52M	-141.82M
EBITDA	-113.53M	-102.65M	-145.83M	-107.70M	-230.53M	-218.23M
Net Income	-166.94M	-157.85M	-240.05M	-157.13M	-230.03M	-246.29M
Balance Sheet
Total Assets	289.76M	321.98M	354.78M	490.86M	617.97M	513.69M
Cash, Cash Equivalents and Short-Term Investments	234.74M	250.87M	278.60M	326.44M	466.54M	439.19M
Total Debt	117.27M	123.00M	124.38M	129.85M	139.70M	115.08M
Total Liabilities	527.94M	524.62M	503.03M	411.41M	451.88M	178.19M
Stockholders Equity	-238.18M	-202.64M	-148.25M	79.45M	166.09M	335.50M
Cash Flow
Free Cash Flow	-132.26M	-124.70M	-121.90M	-139.00M	-239.75M	-171.54M
Operating Cash Flow	-131.90M	-123.83M	-118.69M	-138.31M	-233.38M	-168.73M
Investing Cash Flow	-354.00K	-867.00K	-3.22M	-687.00K	-6.67M	-2.83M
Financing Cash Flow	92.74M	97.05M	73.88M	-897.00K	267.39M	494.97M

ADC Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADCT, the sentiment is Negative. The current price of 3.51 is below the 20-day moving average (MA) of 3.84, below the 50-day MA of 4.04, and above the 200-day MA of 3.01, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 17.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADCT.

ADC Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLN	56 Neutral	$290.02M	-3.71	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ADCT	50 Neutral	$437.29M	-2.42	―	―	6.35%	39.57%
HRTX	48 Neutral	$234.70M	-15.82	―	―	12.60%	58.23%
AVIR	47 Neutral	$282.82M	-2.06	-37.98%	―	―	14.33%
OLMA	46 Neutral	$2.16B	-14.48	-59.22%	―	―	17.23%
JBIO	39 Underperform	$760.45M	-1.45	-50.23%	14.68%	―	89.16%

ADC Therapeutics Corporate Events

ADC Therapeutics Reports Promising LOTIS-7 Trial Results

On December 3, 2025, ADC Therapeutics announced updated results from its LOTIS-7 Phase 1b trial, which evaluates the combination of ZYNLONTA® and glofitamab in patients with relapsed or refractory diffuse large B-cell lymphoma. The trial showed a high overall response rate of 89.8% and a complete response rate of 77.6%, with strong efficacy in both relapsed and primary refractory populations. The treatment was generally well tolerated, with manageable safety concerns, highlighting its potential impact on the company’s therapeutic offerings and market positioning.

ADC Therapeutics Announces $60M Private Placement

On October 12, 2025, ADC Therapeutics announced a $60 million private placement with institutional investors, expected to close on October 27, 2025. The proceeds will support the commercial expansion of ZYNLONTA and strengthen the company’s balance sheet, positioning it for long-term growth and a potential relaunch of ZYNLONTA in 2027.

ADC Therapeutics Updates Strategic Focus on ZYNLONTA

On September 30, 2025, ADC Therapeutics released an updated corporate presentation detailing their strategic focus on expanding ZYNLONTA’s indications and advancing their PSMA-targeting ADC. The company aims to enhance its market position by leveraging its specialized capabilities in ADCs, supported by a multidisciplinary team and a cash runway extending into 2028. This strategic direction is expected to impact its operations and stakeholder interests positively.