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ADC Therapeutics SA (ADCT) Q4 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Net Product Revenue (Q4 2024): $16.4 million, compared to $16.6 million in Q4 2023.

  • Net Product Revenue (Full Year 2024): $69.3 million, compared to $69.1 million in 2023.

  • Operating Expenses Reduction: Decreased by 13% year-over-year on a non-GAAP basis.

  • Net Loss (Q4 2024): $30.7 million or $0.29 per share, compared to $85 million or $1.03 per share in Q4 2023.

  • Net Loss (Full Year 2024): $157.8 million or $1.62 per share, compared to $240.1 million or $2.94 per share in 2023.

  • Adjusted Net Loss (Q4 2024): $26.5 million or $0.25 per share, compared to $79.5 million or $0.97 per share in Q4 2023.

  • Adjusted Net Loss (Full Year 2024): $111.4 million or $1.15 per share, compared to $185.7 million or $2.27 per share in 2023.

  • Cash and Cash Equivalents (End of 2024): $251 million, expected to fund operations into the second half of 2026.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • ADC Therapeutics SA (NYSE:ADCT) achieved commercial brand profitability with ZYNLONTA in the competitive third-line plus DLBCL space.

  • The company completed enrollment in the pivotal Phase 3 LOTIS-5 trial and reported promising initial data from the LOTIS-7 trial.

  • ADCT achieved a double-digit reduction in operating expenses for the second consecutive year, strengthening its financial position.

  • The company ended 2024 with $251 million in cash and cash equivalents, providing a cash runway into the second half of 2026.

  • Promising Phase 2 data from investigator-initiated trials in indolent lymphomas suggest potential for significant market opportunities.

Negative Points

  • ZYNLONTA's net product revenues remained flat year-over-year, indicating challenges in revenue growth.

  • The competitive landscape in the third-line plus DLBCL market remains intense, with new entrants like Pfizer's ADCETRIS posing potential challenges.

  • Despite progress, the company reported a net loss of $157.8 million for the full year 2024.

  • The market for ZYNLONTA in indolent lymphomas is estimated to be $100 million to $200 million, which may be considered modest.

  • The company faces uncertainty regarding the timing and outcome of regulatory approvals and compendia listings for its pipeline products.

Q & A Highlights

Q: Can you provide details on the LOTIS-7 update expected in Q2? A: We haven't disclosed the specific forum or exact timing within Q2 for sharing the LOTIS-7 data. However, we are on track to enroll 40 patients in the dose expansion in the second quarter. We will share safety and efficacy data on a portion of those patients in Q2 and data on all 40 patients in the second half of the year. - Ameet Mallik, CEO