ADC Therapeutics Reports $157.8 Million Net Loss for 2024, Revenue Increases to $70.8 Million

ADC Therapeutics SA (ADCT), a commercial-stage company specializing in antibody-drug conjugates (ADCs), reported a net loss of $157.8 million for the year ended December 31, 2024, compared to a net loss of $240.1 million in 2023. Total net revenue increased slightly to $70.8 million in 2024 from $69.6 million in 2023, driven by a 212.7% increase in license revenues and royalties to $1.6 million, offsetting a slight decrease in product revenues. The increase in license revenue is primarily attributable to increased royalty revenue from the exclusive license agreement with SOBI for ZYNLONTA commercialization outside the U.S., Japan, Greater China, and Singapore. Cost of product sales increased to $5.9 million in 2024 from $2.5 million in 2023, primarily due to higher stability, shipping, and storage costs, a batch cancellation fee, and commercial inventory expenses.

Research and development expenses decreased by 13.8% to $109.6 million in 2024 compared to $127.1 million in 2023. This decrease was primarily due to lower ZYNLONTA clinical trial costs, professional fees, and employee expenses, partially offset by increased spending on preclinical product candidates and the ADCT-601 program before its discontinuation in November 2024. Selling and marketing expenses decreased by 23.4% to $44.0 million in 2024, mainly due to reduced marketing and advertising expenses and lower employee expenses. General and administrative expenses also decreased by 13.5% to $41.9 million, primarily due to lower professional fees and insurance costs. Interest income increased to $12.3 million in 2024 from $10.5 million in 2023, while interest expense increased to $50.2 million from $46.3 million, largely due to higher accretion of the deferred royalty obligation with HCR.

The company's flagship product, ZYNLONTA, received accelerated approval from the FDA, conditional approval from the European Commission, and conditional approval from the NMPA for relapsed or refractory DLBCL after two or more lines of systemic therapy. ADCT is pursuing expansion of ZYNLONTA into earlier lines of DLBCL and indolent lymphomas through clinical trials (LOTIS-5 and LOTIS-7) and investigator-initiated trials. The company is also developing ADCT-602 in collaboration with MD Anderson Cancer Center for relapsed or refractory B-cell acute lymphoblastic leukemia. In the solid tumor space, ADCT is advancing preclinical research programs targeting Claudin-6, PSMA, NaPi2b, and ASCT2, and is seeking strategic partnerships to further develop these programs. As of December 31, 2024, ADC Therapeutics employed 263 full-time and two part-time employees.

ADC Therapeutics reported $250.9 million in cash and cash equivalents as of December 31, 2024, and believes these resources are sufficient to fund operations for at least the next twelve months. The company plans to continue funding operations through existing cash, ZYNLONTA sales, milestone and royalty payments, and potential future equity or debt financings and collaborations. The company's financial statements include significant non-cash charges and volatility due to factors such as the fair value remeasurement of warrants and the accretion of the deferred royalty obligation. The company also faces risks related to its ability to raise additional capital, comply with debt covenants, maintain regulatory approvals, successfully commercialize its products, and manage competition within the biotechnology industry. The company highlights numerous risk factors, including those related to clinical trial outcomes, manufacturing complexities, intellectual property protection, and regulatory changes, particularly those introduced by the Inflation Reduction Act.