ADC Therapeutics Announces Q2 2024 Financial Results and Operational Update

ADC Therapeutics SA, a global leader in antibody drug conjugates (ADCs), announced financial results for the second quarter ending June 30, 2024, alongside key operational updates. The company achieved commercial profitability with ZYNLONTA, generating $17.0 million in net sales for the quarter, marking a 5% decline from the previous quarter's $17.8 million. This decrease in demand was partly due to variability in ordering patterns.

CEO Ameet Mallik expressed optimism regarding the company's trajectory, highlighting the milestone of ZYNLONTA's profitability in the first half of 2024. He emphasized the company’s focus on expanding into second-line treatment settings for DLBCL and indolent lymphomas. Mallik also noted the progress of the LOTIS-5 and LOTIS-7 trials and the ongoing development of ADCT-601 targeting AXL, with a robust cash runway projected into mid-2026.

Second Quarter 2024 Operational Updates & Highlights

ZYNLONTA: Achieved commercial profitability in the first half of 2024, with net sales of $17.0 million in Q2. The slight dip in sales compared to Q1’s $17.8 million was attributed to varying ordering patterns.

LOTIS-7 Trial: The Phase 1b trial evaluating ZYNLONTA in combination with bispecific antibodies, glofitamab or mosunetuzumab, has completed dose escalation. Enrollment for the dose expansion part is progressing, with completion anticipated by year-end, and an update on safety and efficacy expected by the end of 2024. Data on all patients is anticipated in the first half of 2025.

LOTIS-5 Trial: This Phase 3 trial for ZYNLONTA combined with rituximab in patients with 2L+ DLBCL is advancing well. An Independent Data Monitoring Committee has recommended the trial’s continuation as planned after a prespecified interim analysis. Full enrollment is expected by the end of 2024.

Marginal Zone Lymphoma (MZL) Trial: Initial data from an investigator-initiated Phase 2 trial showed promising results, with 13 out of 15 patients achieving a complete response. This multi-center study aims to enroll 50 patients, with additional data publications expected in 2024 or 2025.

Follicular Lymphoma (FL) Trial: Another investigator-initiated Phase 2 trial is underway, evaluating ZYNLONTA in combination with rituximab. Updates are expected at medical congresses in 2024 or 2025.

ADCT-601 (targeting AXL): The Phase 1b trial continues to enroll patients in the sarcoma and pancreatic cancer arms. Initial updates from this trial are expected in the second half of 2024.

Early-Stage Pipeline: ADC Therapeutics is progressing IND-enabling studies for its PSMA, NaPi2b, and Claudin-6 targeting ADCs, with a new target expected to move toward IND by 2025.

Financial Results for Q2 and First Half of 2024

Cash and Cash Equivalents: As of June 30, 2024, the company held $300.1 million, up from $278.6 million on December 31, 2023. A May 2024 underwritten offering raised approximately $97.4 million, extending the cash runway into mid-2026.

Product Revenues: Net product revenues were $17.0 million for Q2 and $34.9 million for the first half of 2024, compared to $19.2 million and $38.2 million for the same periods in 2023. 

Research and Development (R&D): R&D expenses totaled $24.3 million for Q2 and $50.0 million for the first half of 2024, down from $31.3 million and $69.7 million in 2023, attributed to productivity initiatives and focused investments.

Selling and Marketing (S&M): S&M expenses were $10.7 million for Q2 and $22.1 million for the first half of 2024, reduced from $14.5 million and $29.8 million in 2023, mainly due to lower marketing, advertising, and personnel-related costs.

General & Administrative (G&A): G&A expenses were $10.2 million for Q2 and $22.3 million for the first half of 2024, compared to $12.0 million and $27.5 million in 2023, primarily due to decreased legal, audit, insurance, and IT expenses.

Net Loss: The net loss for Q2 2024 was $36.5 million, or $0.38 per share, compared to $48.9 million, or $0.60 per share, in Q2 2023. For the first half of 2024, the net loss was $83.2 million, or $0.93 per share, compared to $108.3 million, or $1.33 per share, in the same period in 2023, mainly due to lower operating expenses.

Adjusted Net Loss: Adjusted net loss for Q2 was $24.4 million, or $0.25 per share, compared to $32.1 million, or $0.39 per share, in Q2 2023. For the first half of 2024, it was $55.5 million, or $0.62 per share, compared to $73.9 million, or $0.91 per share, in the first half of 2023.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!