ADC Therapeutics (NYSE:ADCT) Posts Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• ADC Therapeutics beat quarterly estimates: EPS was a loss of $0.11, better than the expected loss of $0.22, while revenue reached $19.25 million versus the $18.89 million consensus.
• The FDA raised substantial benefit-risk concerns about the LOTIS-5 ZYNLONTA combination, potentially delaying or complicating a regulatory filing; management said the concerns do not affect ZYNLONTA monotherapy.
• LOTIS-7 enrollment reached 100 patients, and the company plans to pursue breakthrough designation while evaluating a Phase III trial. Cost reductions are expected to save about $10 million annually and extend cash runway into at least 2028.

ADC Therapeutics (NYSE:ADCT - Get Free Report) announced its earnings results on Thursday. The company reported ($0.11) EPS for the quarter, topping the consensus estimate of ($0.22) by $0.11, FiscalAI reports. The company had revenue of $19.25 million for the quarter, compared to the consensus estimate of $18.89 million.

Here are the key takeaways from ADC Therapeutics' conference call:

• FDA raised substantial benefit-risk concerns regarding the LOTIS-5 combination of ZYNLONTA and rituximab, leaving ADC Therapeutics assessing whether additional data, risk-management measures, or label changes can support a regulatory filing.
• LOTIS-7 enrollment reached 100 patients, and management described the ZYNLONTA-plus-glofitamab data submitted to ASH as potentially practice-changing, with plans to seek breakthrough designation and evaluate a Phase III trial.
• Management said the FDA’s LOTIS-5 concerns were specific to the combination trial and did not affect ZYNLONTA monotherapy, which the company expects to remain available under accelerated approval in third-line-plus DLBCL.
• Q2 ZYNLONTA revenue was broadly stable at $18.6 million, while adjusted operating expenses fell 22% year over year; the June reorganization is expected to generate approximately $10 million in annual savings and extend cash runway into at least 2028.

ADC Therapeutics Price Performance

Shares of ADCT traded down $0.18 during trading hours on Thursday, hitting $1.04. The stock had a trading volume of 1,868,282 shares, compared to its average volume of 1,263,272. ADC Therapeutics has a 1-year low of $0.78 and a 1-year high of $4.98. The firm has a market capitalization of $132.91 million, a P/E ratio of -1.00 and a beta of 1.89. The firm has a 50 day simple moving average of $1.15 and a 200-day simple moving average of $2.91.

Institutional Trading of ADC Therapeutics

Several hedge funds have recently bought and sold shares of the business. Engineers Gate Manager LP acquired a new position in ADC Therapeutics during the fourth quarter worth $43,000. Creative Planning bought a new stake in ADC Therapeutics during the 2nd quarter worth approximately $96,000. Russell Investments Group Ltd. raised its stake in shares of ADC Therapeutics by 31.1% in the third quarter. Russell Investments Group Ltd. now owns 32,502 shares of the company's stock worth $130,000 after purchasing an additional 7,701 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in ADC Therapeutics by 25.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 46,750 shares of the company's stock valued at $166,000 after buying an additional 9,537 shares during the last quarter. Finally, MetLife Investment Management LLC boosted its holdings in shares of ADC Therapeutics by 65.3% in the 4th quarter. MetLife Investment Management LLC now owns 49,682 shares of the company's stock worth $175,000 after buying an additional 19,633 shares during the last quarter. Institutional investors and hedge funds own 41.10% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on ADCT shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ADC Therapeutics in a research note on Friday, July 17th. HC Wainwright cut ADC Therapeutics from a "buy" rating to a "neutral" rating in a research note on Monday, June 8th. Stephens reaffirmed an "overweight" rating and issued a $5.00 price objective on shares of ADC Therapeutics in a research note on Thursday, June 4th. Royal Bank Of Canada downgraded shares of ADC Therapeutics from an "outperform" rating to a "sector perform" rating and decreased their target price for the company from $6.00 to $2.00 in a research report on Thursday, June 4th. Finally, Wall Street Zen lowered shares of ADC Therapeutics from a "hold" rating to a "sell" rating in a report on Saturday, June 6th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $6.25.

ADC Therapeutics Company Profile

ADC Therapeutics SA is a clinical-stage biopharmaceutical company focused on the discovery and development of highly targeted antibody-drug conjugates (ADCs) designed to treat hematological malignancies such as non-Hodgkin lymphoma and acute myeloid leukemia. By marrying the specificity of monoclonal antibodies with potent cytotoxic payloads, the company aims to maximize tumor cell eradication while limiting off-target toxicity.

At the core of ADC Therapeutics' portfolio is loncastuximab tesirine-lpyl, a CD19-directed ADC that received accelerated approval from the U.S.

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