ADC Therapeutics (ADCT) AI Stock Analysis

• Market Cap: $374.62M
• Dividend Yield: N/A
• Average Volume (3M): 698.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.54
• Revenue Growth: 15.73%
• EPS Growth: 38.73%
• Country: US
• Employees: 263
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -0.50
• Shares Outstanding: 112,499,400
• 10 Day Avg. Volume: 622,749
• 30 Day Avg. Volume: 698,020
• 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: 1.31
• Enterprise Value/Revenue: 7.00
• Enterprise Value/Gross Profit: 7.69
• Enterprise Value/Ebitda: -4.95
• 1Y Price Target: $7.50
• Price Target Upside: 125.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $3.50 ▲(5.11% 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 Trial Success

Strong clinical trial results indicate potential for successful product development, enhancing ADC Therapeutics' competitive position in the oncology market.

Extended Cash Runway

An extended cash runway provides financial stability, allowing ADC Therapeutics to focus on long-term strategic initiatives without immediate funding pressure.

Strategic Partnerships

Strategic partnerships and capital infusion from institutional investors bolster financial resources, supporting ADC Therapeutics' growth and product development efforts.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, potentially limiting ADC Therapeutics' ability to invest in growth and manage economic downturns.

Negative Cash Flow

Ongoing negative cash flow suggests operational inefficiencies and cash burn issues, which could hinder ADC Therapeutics' ability to sustain operations without additional financing.

Restructuring Costs

Significant restructuring costs reflect operational challenges and may impact short-term profitability, requiring careful management to ensure long-term benefits.

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 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: 3.33
• 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 3.33 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 3.07, and above the 200-day MA of 2.24, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 46.48 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
ADCT	54 Neutral	$374.62M	―	123.38%	―	15.73%	38.73%
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
SLN	49 Neutral	$230.50M	―	-99.23%	―	-40.10%	-16.60%
HRTX	48 Neutral	$234.64M	―	40.36%	―	9.78%	98.13%
AVIR	47 Neutral	$261.88M	―	-32.38%	―	―	23.24%
OLMA	46 Neutral	$549.07M	―	-49.72%	―	―	6.82%
JBIO	39 Underperform	$253.18M	―	-38.06%	30.93%	―	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.