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ADC Therapeutics Ltd (ADCT)
NYSE:ADCT
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ADC Therapeutics
(NYSE:ADCT)
Rating:53Neutral
Price Target:
$3.00
▲(8.30%Upside)
Positive Factors
Clinical Trials
The expansion of the trial for Zynlonta + Columvi in r/r DLBCL showcases promising potential for the treatment.
Financial Performance
ADC Therapeutics recorded a net loss of $0.29 per share, which is narrower than the previously estimated net loss of $0.41 per share.
Funding
$100M PIPE provides financial stability, extending the company's operational runway into 2028.
Negative Factors
Market Uptake
The market uptake for ADCT-402 has been slower than anticipated, affecting potential revenue growth.
Product Sales
ZYNLONTA's 4Q24 sales decreased compared to 3Q24, indicating a drop in revenue momentum.
Regulatory Risks
There is a risk of not obtaining timely approval for ADCT-402 in DLBCL, which could delay market entry.
ADC Therapeutics (ADCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$274.72M
Dividend YieldN/A
Average Volume (3M)777.53K
Price to Earnings (P/E)―
Beta (1Y)2.40
Revenue Growth10.49%
EPS Growth47.31%
CountryUS
Employees263
SectorHealthcare
Sector Strength37
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.36
Shares Outstanding99,178,280
10 Day Avg. Volume566,985
30 Day Avg. Volume777,530
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)-1.48
Price to Sales (P/S)0.00
P/FCF Ratio-2.40
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue137.06
Enterprise Value/Gross Profit-15.70
Enterprise Value/Ebitda-1.69
Forecast
1Y Price Target
$7.50Price Target Upside170.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
ADC Therapeutics Business Overview & Revenue Model
Company DescriptionADC 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 MoneyADC 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 Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 109.85%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant clinical achievements, particularly with the promising LOTIS-7 trial data, and demonstrated effective cost management and revenue stability. However, the discontinuation of the ADCT602 trial and a notable net loss are concerning. Despite these challenges, the company's financial outlook remains strong with a solid cash runway.Q1-2025 Updates
Positive Updates
Promising LOTIS-7 EHA Abstract Data
ZYNLONTA plus glofitamab demonstrated an overall response rate of 95.5% and a complete response rate of 90.9% in 22 efficacy-evaluable patients, significantly higher than typical rates in other bispecific combination trials.
Financial Performance
Total first quarter revenues were $23 million, including net product revenues of $17.4 million and an additional $5.6 million from milestone and royalty payments.
Cost Management
Total operating expenses for the first quarter were $49.1 million on a non-GAAP basis, representing a 5% net decrease over the prior year, driven primarily by a reduction in SG&A.
Cash Runway
Cash and cash equivalents were $194.7 million as of March 31, 2025, with a runway expected to fund operations into the second half of 2026.
Negative Updates
ADCT602 Trial Discontinuation
The trial sponsored by the University of Texas MD Anderson Cancer Center evaluating ADCT602 in patients with relapsed or refractory B-cell acute lymphoblastic leukemia is being discontinued based on available clinical data.
Net Loss
Reported a net loss of $38.6 million for the first quarter of 2025, although this was an improvement from the $46.6 million net loss in the same period in 2024.
Cash Position Decrease
Cash and cash equivalents decreased from $250.9 million on December 31, 2024, to $194.7 million on March 31, 2025, primarily driven by net loss from operations and timing of cash receipts and payments.
Company Guidance
During ADC Therapeutics' First Quarter 2025 Earnings Call, the company provided guidance on several key metrics. The first quarter revenues totaled $23 million, with net product revenues from ZYNLONTA amounting to $17.4 million, aligning with first quarter sales in 2024 and showing improvement over $16.4 million in the fourth quarter of 2024. Milestone and royalty payments contributed an additional $5.6 million to the total revenue. ADC Therapeutics reported a net loss of $38.6 million, or $0.36 per share, compared to a net loss of $46.6 million, or $0.56 per share, in the same period of 2024, primarily due to increased licensing revenues and reduced expenses. The company maintains a cash runway expected to fund operations into the second half of 2026, with cash and cash equivalents at $194.7 million as of March 31, 2025. The guidance highlighted the promising data from their LOTIS-7 trial, showing a 95.5% overall response rate and a 90.9% complete response rate, and plans to expand patient enrollment to support regulatory discussions. The Phase 3 LOTIS-5 trial continues to progress, with expectations to reach the pre-specified number of progression-free survival events by the end of 2025.ADC Therapeutics Financial Statement Overview
Summary
ADC Therapeutics is facing significant financial challenges, including declining revenues, negative margins, high leverage, and cash burn issues. These factors highlight the need for operational improvements and financial stabilization.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.35
Negative
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.20
Very Negative
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.30
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 69.28M | 69.56M | 209.91M | 33.92M | 0.00 |
| Gross Profit | 63.33M | 67.03M | 205.33M | 32.52M | -1.97M |
| EBITDA | -103.71M | -146.76M | -108.06M | -223.72M | -219.26M |
| Net Income | -157.85M | -240.05M | -155.80M | -230.03M | -246.29M |
Balance Sheet | |||||
| Total Assets | 321.98M | 354.78M | 490.86M | 617.97M | 513.69M |
| Cash, Cash Equivalents and Short-Term Investments | 250.87M | 278.60M | 326.44M | 466.54M | 439.19M |
| Total Debt | 123.00M | 124.38M | 117.38M | 101.75M | 41.87M |
| Total Liabilities | 524.62M | 503.03M | 411.41M | 451.88M | 178.19M |
| Stockholders Equity | -202.64M | -148.25M | 79.45M | 166.09M | 335.50M |
Cash Flow | |||||
| Free Cash Flow | -124.70M | -121.90M | -139.09M | -239.75M | -171.54M |
| Operating Cash Flow | -123.83M | -118.69M | -136.79M | -233.38M | -168.73M |
| Investing Cash Flow | -867.00K | -3.22M | -2.51M | -6.67M | -2.83M |
| Financing Cash Flow | 97.05M | 73.88M | -593.00K | 267.39M | 494.97M |
ADC Therapeutics Technical Analysis
Neutral
2.77
Price Trends
3.02
Negative
2.24
Positive
2.21
Positive
Market Momentum
0.02
Positive
42.84
Neutral
12.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADCT, the sentiment is Neutral. The current price of 2.77 is below the 20-day moving average (MA) of 3.07, below the 50-day MA of 3.02, and above the 200-day MA of 2.21, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ADCT.
ADC Therapeutics Risk Analysis
ADC Therapeutics disclosed 57 risk factors in its most recent earnings report. ADC Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ADC Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
56 Neutral | $282.24M | ― | 40.36% | ― | 12.43% | 91.67% | |
53 Neutral | $274.72M | ― | 123.38% | ― | 10.49% | 47.31% | |
52 Neutral | $290.94M | ― | -99.23% | ― | -40.10% | -16.60% | |
47 Neutral | $311.51M | ― | -30.47% | ― | ― | -22.66% | |
46 Neutral | C$198.38M | -2.33 | -23.14% | 2.83% | 20.73% | -1.08% | |
46 Neutral | $351.69M | ― | -41.59% | ― | ― | 0.42% | |
39 Underperform | $231.78M | ― | -59.01% | 33.38% | ― | 44.04% |
* Healthcare Sector Average
Performance Comparison
ADCT
ADC Therapeutics
2.77
-0.11
-3.82%
HRTX
Heron Therapeutics
1.73
-0.99
-36.40%
SLN
Silence Therapeutics
6.16
-12.69
-67.32%
AVIR
Atea Pharmaceuticals
3.64
0.19
5.51%
OLMA
Olema Pharmaceuticals
5.14
-8.98
-63.60%
JBIO
Jade Biosciences
7.19
0.86
13.59%
ADC Therapeutics Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
ADC Therapeutics Announces $100M Private Placement
Neutral
Jun 12, 2025
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.
The most recent analyst rating on (ADCT) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on ADC Therapeutics stock, see the ADCT Stock Forecast page.
Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
ADC Therapeutics Approves Key Proposals at Annual Meeting
Positive
Jun 5, 2025
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.
The most recent analyst rating on (ADCT) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on ADC Therapeutics stock, see the ADCT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.