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

ADC Therapeutics (NYSE:ADCT) issued its quarterly earnings data on Thursday. The company reported ($0.11) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.22) by $0.11, FiscalAI reports. The firm had revenue of $19.25 million for the quarter, compared to analyst estimates 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 Stock Down 4.3%

ADCT opened at $1.00 on Friday. The firm has a market cap of $127.83 million, a P/E ratio of -1.52 and a beta of 1.89. The business’s fifty day simple moving average is $1.15 and its 200 day simple moving average is $2.88. ADC Therapeutics has a 52 week low of $0.78 and a 52 week high of $4.98.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ADCT. Engineers Gate Manager LP purchased a new stake in shares of ADC Therapeutics during the fourth quarter worth about $43,000. AQR Capital Management LLC raised its position in shares of ADC Therapeutics by 42.2% in the fourth quarter. AQR Capital Management LLC now owns 206,576 shares of the company’s stock valued at $729,000 after buying an additional 61,324 shares during the last quarter. Cantor Fitzgerald L. P. purchased a new position in shares of ADC Therapeutics during the fourth quarter valued at approximately $353,000. Jump Financial LLC lifted its stake in shares of ADC Therapeutics by 1,299.8% during the fourth quarter. Jump Financial LLC now owns 162,250 shares of the company’s stock valued at $573,000 after buying an additional 150,659 shares during the period. Finally, Price T Rowe Associates Inc. MD lifted its stake in shares of ADC Therapeutics by 25.6% during the fourth 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 period. 41.10% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on ADCT. Wall Street Zen upgraded ADC Therapeutics from a “sell” rating to a “hold” rating in a research report on Saturday. Stephens reissued an “overweight” rating and issued a $5.00 price objective on shares of ADC Therapeutics in a research note on Thursday, June 4th. Cantor Fitzgerald restated an “overweight” rating on shares of ADC Therapeutics in a report on Thursday, June 4th. HC Wainwright cut shares of ADC Therapeutics from a “buy” rating to a “neutral” rating in a research report on Monday, June 8th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of ADC Therapeutics in a research report on Friday, July 17th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, ADC Therapeutics currently has an average rating of “Hold” and an average 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.