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

ADC Therapeutics (NYSE:ADCT) issued its earnings results on Thursday. The company reported ($0.11) earnings per share for the quarter, topping the consensus estimate of ($0.22) by $0.11, FiscalAI reports. The company 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 Price Performance

ADCT opened at $1.02 on Friday. ADC Therapeutics has a 12 month low of $0.78 and a 12 month high of $4.98. The business has a 50-day moving average of $1.15 and a two-hundred day moving average of $2.89. The stock has a market capitalization of $130.37 million, a price-to-earnings ratio of -0.98 and a beta of 1.89.

Wall Street Analyst Weigh In

A number of brokerages recently commented on ADCT. Wall Street Zen cut shares of ADC Therapeutics from a “hold” rating to a “sell” rating in a research note 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. Cantor Fitzgerald reiterated an “overweight” rating on shares of ADC Therapeutics in a report on Thursday, June 4th. Weiss Ratings reissued a “sell (d-)” rating on shares of ADC Therapeutics in a report on Friday, July 17th. Finally, Stephens restated an “overweight” rating and issued a $5.00 price objective on shares of ADC Therapeutics in a research report on Thursday, June 4th. Three research 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. According to MarketBeat.com, ADC Therapeutics currently has an average rating of “Hold” and an average price target of $6.25.

Hedge Funds Weigh In On ADC Therapeutics

A number of hedge funds have recently made changes to their positions in the stock. Engineers Gate Manager LP acquired a new stake in shares of ADC Therapeutics during the 4th quarter worth $43,000. Creative Planning acquired a new stake in ADC Therapeutics during the second quarter worth about $96,000. Russell Investments Group Ltd. raised its holdings in shares of ADC Therapeutics by 31.1% in the 3rd quarter. Russell Investments Group Ltd. now owns 32,502 shares of the company’s stock worth $130,000 after purchasing an additional 7,701 shares during the period. Price T Rowe Associates Inc. MD lifted its stake in shares of ADC Therapeutics by 25.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 46,750 shares of the company’s stock valued at $166,000 after purchasing an additional 9,537 shares in the last quarter. Finally, MetLife Investment Management LLC grew its holdings in shares of ADC Therapeutics by 65.3% during the 4th quarter. MetLife Investment Management LLC now owns 49,682 shares of the company’s stock worth $175,000 after purchasing an additional 19,633 shares during the period. Institutional investors and hedge funds own 41.10% of the company’s stock.

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.