• Net Product Revenue (Q4 2024): $16.4 million, compared to $16.6 million in Q4 2023.
• Net Product Revenue (Full Year 2024): $69.3 million, compared to $69.1 million in 2023.
• Operating Expenses Reduction: Decreased by 13% year-over-year on a non-GAAP basis.
• Net Loss (Q4 2024): $30.7 million or $0.29 per share, compared to $85 million or $1.03 per share in Q4 2023.
• Net Loss (Full Year 2024): $157.8 million or $1.62 per share, compared to $240.1 million or $2.94 per share in 2023.
• Adjusted Net Loss (Q4 2024): $26.5 million or $0.25 per share, compared to $79.5 million or $0.97 per share in Q4 2023.
• Adjusted Net Loss (Full Year 2024): $111.4 million or $1.15 per share, compared to $185.7 million or $2.27 per share in 2023.
• Cash and Cash Equivalents (End of 2024): $251 million, expected to fund operations into the second half of 2026.

• Warning! GuruFocus has detected 5 Warning Signs with ADCT.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ADC Therapeutics SA (NYSE:ADCT) achieved commercial brand profitability with ZYNLONTA in the competitive third-line plus DLBCL space.
• The company completed enrollment in the pivotal Phase 3 LOTIS-5 trial and reported promising initial data from the LOTIS-7 trial.
• ADCT achieved a double-digit reduction in operating expenses for the second consecutive year, strengthening its financial position.
• The company ended 2024 with $251 million in cash and cash equivalents, providing a cash runway into the second half of 2026.
• Promising Phase 2 data from investigator-initiated trials in indolent lymphomas suggest potential for significant market opportunities.

Negative Points

• ZYNLONTA's net product revenues remained flat year-over-year, indicating challenges in revenue growth.
• The competitive landscape in the third-line plus DLBCL market remains intense, with new entrants like Pfizer's ADCETRIS posing potential challenges.
• Despite progress, the company reported a net loss of $157.8 million for the full year 2024.
• The market for ZYNLONTA in indolent lymphomas is estimated to be $100 million to $200 million, which may be considered modest.
• The company faces uncertainty regarding the timing and outcome of regulatory approvals and compendia listings for its pipeline products.

Q & A Highlights

Q: Can you provide details on the LOTIS-7 update expected in Q2? A: We haven't disclosed the specific forum or exact timing within Q2 for sharing the LOTIS-7 data. However, we are on track to enroll 40 patients in the dose expansion in the second quarter. We will share safety and efficacy data on a portion of those patients in Q2 and data on all 40 patients in the second half of the year. - Ameet Mallik, CEO

Q: How do you view the impact of Pfizer's ADCETRIS approval on ZYNLONTA's market position? A: The approval of ADCETRIS plus R-squared in the third-line setting is expected to have limited impact. Physicians have multiple options, and based on our market research, any use of ADCETRIS is likely to replace older regimens like R-squared or R-based chemo in the third-line plus DLBCL setting. - Ameet Mallik, CEO

Q: What is the market opportunity for ZYNLONTA in indolent lymphomas? A: Based on compelling data presented in marginal zone lymphoma and follicular lymphoma, we believe the peak opportunity for ZYNLONTA in indolent lymphomas will be in the $100 million to $200 million range, assuming regulatory approval and compendia listing. - Ameet Mallik, CEO

Q: How does the LOTIS-5 trial impact your strategy for LOTIS-7? A: LOTIS-5 and LOTIS-7 are complementary approaches addressing different patient needs. LOTIS-5 offers a non-systemic chemo combination with favorable safety and convenience, while LOTIS-7 aims to be the preferred bispecific combination in second-line plus DLBCL. Both approaches allow us to cater to patients who can't access or are not suitable for CAR-T or bispecific therapies. - Ameet Mallik, CEO

Q: What are the benchmarks for LOTIS-5 to be considered competitive in terms of efficacy and safety? A: For LOTIS-5, a complete response rate north of 40% would be differentiated. The study is powered to show a two-month difference in PFS compared to R-GemOx, which typically has a PFS of three to four months. We are encouraged by the safety run-in data showing an overall response rate of 80% and a complete response rate of 50%. - Ameet Mallik, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.