ADC Therapeutics Announces Q1 2024 Financial Results and Business Updates

ADC Therapeutics SA, headquartered in Lausanne, Switzerland, released its financial outcomes for the first quarter ending March 31, 2024, and provided updates on its business activities.

The company, led by CEO Ameet Mallik, observed progress in its hematology and emerging solid tumor pipeline, primarily focusing on ZYNLONTA®. The company reported that ZYNLONTA net sales reached $17.8 million in the first quarter of 2024, reflecting a 7% increase from the fourth quarter of 2023, despite a year-over-year decline due to higher gross-to-net deductions and lower volume.

In the hematology pipeline, the LOTIS-5 Phase 3 confirmatory trial for ZYNLONTA in combination with rituximab for diffuse large B-cell lymphoma (DLBCL) saw accelerated enrollment, with completion expected in 2024. The LOTIS-7 Phase 1b clinical trial, evaluating ZYNLONTA combined with bispecific antibodies glofitamab or mosunetuzumab for relapsed/refractory B-cell non-Hodgkin lymphoma, completed its dose escalation phase without dose-limiting toxicities. Based on the promising data, the trial has moved to the dose expansion phase.

An investigator-initiated Phase 2 trial for ZYNLONTA in relapsed/refractory marginal zone lymphoma (MZL) presented at a scientific workshop showed 13 out of 15 evaluable patients achieving complete response, suggesting potential for this treatment in MZL.

The solid tumor pipeline also made strides with the Phase 1b trial of ADCT-601 targeting AXL in patients with pancreatic cancer, sarcoma, and non-small cell lung cancer continuing enrollment. The company highlighted its novel ADC platform at a virtual Research Investor Event, showcasing its four lead candidates targeting Claudin-6, NaPi2b, PSMA, and ASCT2, each demonstrating promising preclinical data.

Financially, ADC Therapeutics reported a net loss of $46.6 million for the first quarter of 2024, a decrease from the $59.4 million loss in the same period of 2023. This reduction was primarily due to lower operating expenses related to research and development, selling and marketing, and general and administrative costs. Research and development expenses decreased to $25.7 million, reflecting reduced investment in certain programs and productivity initiatives. Selling and marketing expenses also declined to $11.4 million, driven by lower marketing, advertising, and compensation costs. General and administrative expenses fell to $12.0 million, influenced by reduced compensation and professional fees.

The company's cash and cash equivalents stood at $234.3 million as of March 31, 2024, down from $278.6 million at the end of 2023. The company expects its cash runway to extend into the fourth quarter of 2025.

ADC Therapeutics plans to achieve commercial profitability for ZYNLONTA in 2024, complete enrollment for LOTIS-5 in the second half of the year, and continue advancing its pipeline, with multiple data updates anticipated throughout the year.