ADC Therapeutics (ADCT) Q3 2024 earnings summary

Executive summary

• ZYNLONTA net product revenues reached $18.0 million in Q3 2024, up 26.3% year-over-year, with year-to-date revenues at $52.9 million, nearly flat year-over-year.

• Achieved commercial brand profitability for ZYNLONTA YTD 3Q 2024 and maintained a strong cash position of $274.3 million at quarter-end.

• Advanced clinical pipeline with full enrollment in LOTIS-5 Phase 3 trial and LOTIS-7 interim data expected December 2024.

• Discontinued ADCT-601 solid tumor program due to unfavorable benefit-risk profile, shifting focus to exatecan-based ADCs.

• Updated ZYNLONTA Phase 2 data in indolent lymphomas to be presented at ASH 2024.

Financial highlights

• Q3 2024 net product revenue: $18.0 million (up from $14.3 million in Q3 2023); YTD: $52.9 million (up from $52.4 million in 2023).

• Non-GAAP operating expenses for Q3 2024 were $51.2 million, up 5–5.5% year-over-year; YTD non-GAAP operating expenses decreased 12% year-over-year.

• Q3 2024 GAAP net loss: $44.0 million ($0.42/share); non-GAAP adjusted net loss: $29.4 million ($0.28/share), both improved from prior year.

• Cash and cash equivalents stood at $274.3 million as of September 30, 2024, supporting operations into mid-2026.

• R&D expense for Q3 2024 was $32.5 million (up 20% YoY); S&M expense was $10.7 million (down 22.3% YoY); G&A expense was $10.0 million (up 3.9% YoY).

Outlook and guidance

• Cash runway expected into mid-2026, supported by $97.4 million equity raise in May 2024 and anticipated regulatory milestone payments.

• LOTIS-5 full enrollment achieved; data update expected in late 2025.

• LOTIS-7 interim safety and efficacy data expected December 2024, with further data in H1 2025.

• IND-enabling studies ongoing for exatecan-based ADCs, with one candidate moving toward IND in 2025.

• Additional updates on indolent lymphoma programs anticipated at ASH 2024 and in 2025.