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ADC Therapeutics Ltd (ADCT)
NYSE:ADCT
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ADC Therapeutics
(NYSE:ADCT)
Rating:55Neutral
Price Target:
$2.50
▲( 2.88% Upside)
Positive Factors
Clinical Trial Progress
ADC Therapeutics recently announced that it has completed enrollment in LOTIS-5, the Phase 3 confirmatory trial evaluating ZYNLONTA in combination with rituximab in patients with relapsed or refractory diffuse large B-cell lymphoma.
Clinical Trial Results
Treatment with ZYNLONTA + glofitamab generated a 94% overall response rate (ORR) with a 72% complete response (CR) rate.
Financial Performance
ADC Therapeutics recorded a net loss of $0.29 per share—narrower than previously estimated net loss of $0.41 per share.
Negative Factors
Regulatory Risks
Risks include the inability to obtain timely approval for ADCT-402 in DLBCL and slower than anticipated market uptake for ADCT-402.
Sales Performance
ZYNLONTA's 4Q24 sales fall relative to 3Q24.
ADC Therapeutics (ADCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$241.00M
Dividend YieldN/A
Average Volume (3M)460.99K
Price to Earnings (P/E)―
Beta (1Y)2.09
Revenue Growth10.49%
EPS Growth47.31%
CountryUS
Employees263
SectorHealthcare
Sector Strength40
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.36
Shares Outstanding99,178,280
10 Day Avg. Volume892,866
30 Day Avg. Volume460,985
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)-0.66
Price to Sales (P/S)0.00
P/FCF Ratio-1.02
Enterprise Value/Market Cap>-0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit-0.03
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.67Price Target Upside215.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
ADC Therapeutics Business Overview & Revenue Model
Company DescriptionADC 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 MoneyADC Therapeutics generates revenue through the commercialization of its antibody-drug conjugates, primarily through product sales. The company's revenue model includes income from licensing agreements, partnerships, and collaborations with other pharmaceutical companies, which may involve upfront payments, milestone payments, and royalties based on the successful development and sales of its ADCs. Additionally, ADC Therapeutics may engage in research and development collaborations to expand its product pipeline and leverage its proprietary technology.
ADC Therapeutics Financial Statement Overview
Summary
ADC Therapeutics is facing significant financial challenges across all key financial statements. The company shows consistent losses and poor profitability, high leverage with negative equity, and weak cash flow generation. These factors collectively point to a high-risk financial position, requiring strategic intervention to stabilize and improve financial performance.Income Statement
ADC Therapeutics has faced significant challenges in its income statement. The company shows a consistent pattern of operating losses and negative net income, with substantial EBIT and EBITDA losses. Revenue has been volatile, with a sharp decline in recent years. Gross profit margin is positive, indicating some ability to cover the cost of goods sold, but overall profitability metrics are weak with negative net profit margins. This suggests the company is struggling to convert revenue into profit.35
Negative
Balance Sheet
The balance sheet of ADC Therapeutics reveals high leverage, with a negative stockholders' equity indicating insolvency concerns. The debt-to-equity ratio is not applicable due to negative equity, and the company's equity ratio is negative, highlighting financial instability. Total liabilities exceed total assets, posing a risk of financial distress. There is a significant decline in stockholders' equity over the years, which could impact the company's future financing capabilities.25
Negative
Cash Flow
Cash flow analysis shows negative free cash flow consistently, which indicates challenges in generating cash from operations. Operating cash flow is negative, suggesting the company relies on external financing to support its operations. The free cash flow to net income ratio is not favorable, and the company's cash flow position highlights the need for strategic changes to improve liquidity and financial health.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 | EBIT |
| -130.65M | -165.99M | -123.63M | -261.72M | -219.26M | EBITDA |
| -103.71M | -146.76M | -108.06M | -223.72M | -219.26M | Net Income Common Stockholders |
| -157.85M | -240.05M | -155.80M | -230.03M | -246.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 250.87M | 278.60M | 326.44M | 466.54M | 439.19M | Total Assets |
| 321.98M | 354.78M | 529.17M | 617.97M | 513.69M | Total Debt |
| 123.00M | 124.38M | 117.38M | 101.75M | 41.87M | Net Debt |
| -127.87M | -154.22M | -209.07M | -364.79M | -397.32M | Total Liabilities |
| 524.62M | 503.03M | 440.44M | 451.88M | 178.19M | Stockholders Equity |
| -202.64M | -148.25M | 88.73M | 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
Positive
2.43
Price Trends
1.50
Positive
1.61
Positive
2.18
Positive
Market Momentum
0.23
Negative
70.86
Negative
84.33
Negative
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 2.43 is above the 20-day moving average (MA) of 1.64, above the 50-day MA of 1.50, and above the 200-day MA of 2.18, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 84.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 2 New Risks
1.
Our articles of association provide that the competent court with jurisdiction over our registered office in Switzerland will be the exclusive forum for shareholder suits against us, members of our board of directors or members of our executive committee. Q3, 2024
2.
We do not control the conduct of current or any potential future investigator-initiated clinical trials, and the data from such trials is not subject to our review or quality control. Q3, 2024
ADC Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $241.00M | ― | 123.38% | ― | 10.49% | 47.31% | |
53 Neutral | $5.14B | 3.23 | -45.01% | 2.85% | 17.55% | -0.69% | |
49 Neutral | $119.73M | ― | -50.77% | ― | ― | -54.29% | |
49 Neutral | $238.99M | ― | -99.23% | ― | -40.10% | -16.60% | |
39 Underperform | $162.72M | ― | -75.60% | ― | ― | -2.29% | |
36 Underperform | $123.62M | ― | -244.16% | ― | ― | 77.12% | |
28 Underperform | $46.70M | ― | -41.96% | ― | ― | 72.12% |
* Healthcare Sector Average
Performance Comparison
ADCT
ADC Therapeutics
2.43
-1.14
-31.93%
LRMR
Larimar Therapeutics
1.87
-5.51
-74.66%
HURA
TuHURA Biosciences
2.83
-3.75
-56.99%
RAPT
RAPT Therapeutics
1.23
-2.85
-69.85%
KLRS
Kalaris Therapeutics
2.79
-14.57
-83.93%
SLN
Silence Therapeutics
5.06
-17.03
-77.09%
ADC Therapeutics Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: 84.09%|
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 Corporate Events
Business Operations and StrategyFinancial Disclosures
ADC Therapeutics Achieves Profitability with ZYNLONTA
Positive
Jan 13, 2025
ADC Therapeutics announced preliminary information on ZYNLONTA’s net sales and expenses for 2024, showcasing stabilized sales despite increased competition and achieving profitability for the brand. The company has implemented a disciplined portfolio management strategy, resulting in a double-digit cost reduction for the second consecutive year, and anticipates a cash runway into mid-2026, positioning itself strongly in the ADC market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.