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

ADC Therapeutics (NYSE:ADCT) announced its quarterly earnings data on Thursday. The company reported ($0.11) earnings per share for the quarter, beating the consensus estimate of ($0.22) by $0.11, FiscalAI reports. The firm 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 Stock Performance

NYSE ADCT traded down $0.18 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 52-week low of $0.78 and a 52-week high of $4.98. The company has a market capitalization of $132.91 million, a price-to-earnings ratio of -1.00 and a beta of 1.89. The firm has a 50-day moving average of $1.15 and a 200-day moving average of $2.91.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ADCT. Jump Financial LLC boosted its position in shares of ADC Therapeutics by 1,299.8% during the 4th quarter. Jump Financial LLC now owns 162,250 shares of the company’s stock valued at $573,000 after acquiring an additional 150,659 shares during the last quarter. State of Wisconsin Investment Board purchased a new stake in ADC Therapeutics in the fourth quarter valued at approximately $400,000. ExodusPoint Capital Management LP raised its stake in ADC Therapeutics by 23.6% in the fourth quarter. ExodusPoint Capital Management LP now owns 56,783 shares of the company’s stock valued at $200,000 after purchasing an additional 10,842 shares in the last quarter. Barclays PLC raised its position in ADC Therapeutics by 23.7% during the fourth quarter. Barclays PLC now owns 161,386 shares of the company’s stock valued at $570,000 after purchasing an additional 30,926 shares in the last quarter. Finally, Voleon Capital Management LP bought a new stake in ADC Therapeutics during the third quarter worth about $281,000. Institutional investors own 41.10% of the company’s stock.

Analysts Set New Price Targets

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

About ADC Therapeutics

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.