ADC Therapeutics (ADCT) AI Stock Analysis

• Market Cap: $349.87M
• Dividend Yield: N/A
• Average Volume (3M): 682.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.58
• Revenue Growth: 15.73%
• EPS Growth: 38.73%
• Country: US
• Employees: 263
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 112,499,400
• 10 Day Avg. Volume: 755,419
• 30 Day Avg. Volume: 682,127
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 7.00
• Enterprise Value/Gross Profit: 7.69
• Enterprise Value/Ebitda: -4.95
• 1Y Price Target: $7.50
• Price Target Upside: 141.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $3.50 ▲(12.90% Upside)

ADC Therapeutics' overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and high leverage. While technical indicators show positive momentum, the valuation remains unattractive due to ongoing losses. The earnings call provided some optimism with strong clinical trial results and an extended cash runway, but restructuring costs and increased net losses are concerns. Corporate events indicate a strategic focus on growth, which is a positive sign.

Positive Factors

Clinical Trials

ADCT released an update on their Phase 1b LOTIS-7 study of Zynlonta + Columvi, which included highly competitive efficacy data.

Financial Performance

ADC Therapeutics recorded a net loss of $0.29 per share—narrower than previously estimated net loss of $0.41 per share.

Financial Strategy

$100M PIPE extends runway into 2028.

Negative Factors

Market Uptake

Risks include slower than anticipated market uptake for ADCT-402.

Regulatory Approval

Risks include the inability to obtain timely approval for ADCT-402 in DLBCL.

Sales Performance

ZYNLONTA's 4Q24 sales fall relative to 3Q24.

ADC Therapeutics Business Overview & Revenue Model

Company Description

ADC Therapeutics SA (ADCT) is a biotechnology company focused on the development and commercialization of antibody-drug conjugates (ADCs) for the treatment of hematologic cancers and solid tumors. Operating within the healthcare and pharmaceutical sectors, the company leverages its proprietary ADC technology to create targeted therapies that selectively kill cancer cells while sparing healthy cells. ADC Therapeutics is headquartered in Lausanne, Switzerland, and is committed to advancing its innovative therapies through clinical trials and regulatory approvals.

How the Company Makes Money

ADC Therapeutics primarily makes money through the development and commercialization of its proprietary antibody-drug conjugates. Revenue is generated from partnerships, collaborations, and licensing agreements with other pharmaceutical companies, which may include upfront payments, milestone payments, and royalties on sales. The company also seeks to generate revenue from the sale of its ADC products once they receive regulatory approval. Strategic alliances and collaborations are significant contributors to the company's earnings, allowing ADC Therapeutics to leverage external expertise and resources to advance its product pipeline.

ADC Therapeutics Financial Statement Overview

Summary

ADC Therapeutics faces significant financial challenges characterized by declining revenues and margins, high leverage, and negative cash flows. The company must address its operational inefficiencies and improve its financial resilience to stabilize and grow sustainably.

Income Statement

ADC Therapeutics has shown a significant decrease in revenue from 2022 to TTM 2025, with a negative revenue growth rate. The gross profit margin remains relatively high, indicating efficient cost management. However, the company is struggling with negative net and EBIT margins, reflecting ongoing operational and profitability challenges.

Balance Sheet

The balance sheet reveals a concerning financial position, with negative stockholders' equity and a high debt-to-equity ratio due to substantial liabilities outweighing assets. The equity ratio is also negative, indicating high leverage and financial instability.

Cash Flow

Cash flow analysis shows a consistent negative free cash flow, with operating cash flow significantly negative compared to net income, suggesting cash burn issues. While financing cash flow is positive, it primarily covers operational cash deficits rather than growth investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.19M	70.84M	69.56M	209.91M	33.92M	0.00
Gross Profit	63.85M	64.89M	67.03M	205.33M	32.52M	-1.97M
EBITDA	-99.25M	-103.71M	-146.76M	-108.06M	-223.72M	-219.26M
Net Income	-149.84M	-157.85M	-240.05M	-155.80M	-230.03M	-246.29M
Balance Sheet
Total Assets	272.54M	321.98M	354.78M	490.86M	617.97M	513.69M
Cash, Cash Equivalents and Short-Term Investments	194.70M	250.87M	278.60M	326.44M	466.54M	439.19M
Total Debt	334.70M	123.00M	124.38M	117.38M	101.75M	41.87M
Total Liabilities	510.76M	524.62M	503.03M	411.41M	451.88M	178.19M
Stockholders Equity	-238.22M	-202.64M	-148.25M	79.45M	166.09M	335.50M
Cash Flow
Free Cash Flow	-135.40M	-124.70M	-121.90M	-139.09M	-239.75M	-171.54M
Operating Cash Flow	-134.81M	-123.83M	-118.69M	-136.79M	-233.38M	-168.73M
Investing Cash Flow	-590.80K	-867.00K	-3.22M	-2.51M	-6.67M	-2.83M
Financing Cash Flow	95.34M	97.05M	73.88M	-593.00K	267.39M	494.97M

ADC Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADCT, the sentiment is Positive. The current price of 3.1 is above the 20-day moving average (MA) of 2.94, above the 50-day MA of 3.00, and above the 200-day MA of 2.20, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 79.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADCT.

ADC Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	¥346.28B	11.35	-1.45%	2.36%	9.60%	-12.35%
ADCT	54 Neutral	$349.87M	―	123.38%	―	15.73%	38.73%
SLN	49 Neutral	$260.73M	―	-99.23%	―	-40.10%	-16.60%
AVIR	47 Neutral	$276.96M	―	-32.38%	―	―	23.24%
OLMA	46 Neutral	$380.23M	―	-49.72%	―	―	6.82%
HRTX	45 Neutral	$197.75M	―	40.36%	―	9.78%	98.13%
JBIO	39 Underperform	$240.13M	―	-38.06%	29.16%	―	72.33%

ADC Therapeutics Corporate Events

ADC Therapeutics Announces $100M Private Placement

On June 11, 2025, ADC Therapeutics SA announced a $100 million private placement with institutional investors, selling common shares and pre-funded warrants. This strategic move is aimed at bolstering their financial position and facilitating the company’s focus on expanding ZYNLONTA® and advancing its PSMA-targeting ADC. Concurrently, the company announced a restructuring plan to streamline operations by shutting down its U.K. research facility and reducing its workforce by 30%, with expected completion by September 30, 2025. This restructuring is anticipated to incur one-time pre-tax charges of approximately $6 million to $7 million.

ADC Therapeutics Approves Key Proposals at Annual Meeting

On June 3, 2025, ADC Therapeutics SA held its annual general meeting where all proposals were approved by shareholders. Key decisions included the approval of financial statements for 2024, discharge of board members from liability, and reelection of directors and auditors. Additionally, amendments to increase share capital for employee participation were sanctioned, reflecting the company’s strategic focus on growth and employee engagement.