#Switzerland #ADC Therapeutics #ZYNLONTA #Lausanne #Private Placement

ADC Therapeutics Secures $100 Million in Private Placement

ADC Therapeutics SA (NYSE: ADCT), a trailblazer in antibody-drug conjugates (ADCs), has announced a successful private placement raise of $100 million. With this new financing agreement, the company aims to extend its cash runway well into 2028, positioning itself for sustained growth and further development initiatives.

The equity financing involves a sale of 13 million common shares at a price of $3.53 each, along with pre-funded warrants for an additional 15.7 million shares at $3.43. Upon closing, expected on June 16, 2025, the transaction will net ADC approximately $100 million before fees and expenses. This capital infusion will primarily support the clinical development and commercialization of ZYNLONTA, the company’s flagship product, alongside other corporate needs.

Strategic Directions and Restructuring Plans

As part of its strategic focus, ADC Therapeutics has stated its intent to invest heavily in ZYNLONTA. This includes advancing clinical research and promotional efforts for this CD19-directed ADC, which has already received both accelerated FDA approval and conditional EU approval for treating complicated forms of large B-cell lymphoma. Moreover, the company is excited about upcoming clinical milestones from its LOTIS-5 and LOTIS-7 trials, which are expected to deliver significant data in 2025 and 2026.

In addition to supporting ZYNLONTA, the company will push forward with its preclinical development of an exatecan-based ADC targeting the prostate-specific membrane antigen (PSMA). However, ADC plans to halt certain other early-stage research programs in solid tumors, leading to a workforce reduction of approximately 30% across its global operations and closure of its UK facility. These restructuring efforts are anticipated to yield significant operating cost savings.

Financial and Operational Outlook

The anticipated restructuring will come with estimated one-time costs ranging from $6 million to $7 million for employee-related expenses. The company aims to complete restructuring by September 30, 2025, which it believes will set the stage for improved financial performance and operational efficiency moving forward.

ADC Therapeutics projects that these strategic decisions will allow it to significantly decrease its operating expenditures while optimizing its cash flow. The financing undertaken will also enable ADC to maintain a robust cash runway, permitting better allocation of resources toward the development and marketing of its treatments into 2028.

ZYNLONTA: A Closer Look

ZYNLONTA itself is notable for its targeted approach in the treatment of r/r large B-cell lymphoma, where current therapies have been limited in efficacy. By utilizing a unique mechanism that allows the drug to bind selectively to CD19-expressing cells, ZYNLONTA delivers its cytotoxic payload precisely where needed. This mechanism contributes to the ongoing investigations into its effectiveness in various B-cell malignancies beyond initial indications.

The successful placement highlights not only the confidence investors have in ADC's strategic vision but also signifies a critical moment for the company's ongoing projects as they ramp up development timelines. Through effective resource management and focusing on key products, ADC Therapeutics looks poised for a growth trajectory that could redefine treatment standards in oncology.

Heading forward, ADC Therapeutics will file a registration statement with the SEC to facilitate the resale of the common shares associated with this placement, affirming their continued commitment to investor transparency and regulatory compliance. With strategic foresight and strong backing, the company paves its way toward unlocking groundbreaking therapeutic solutions for its patients.