Q3 2025 ADC Therapeutics SA Earnings Call
Good morning, ladies and gentlemen, and welcome to the ADC Therapeutics Q3 2025 earnings conference call.
At this time. All lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call, you require me to assistance please press star Z for the operator. This call is being recorded on Monday, November 10th 2025. I will now turn the call over to Nicole Riley. Have a head of investor relations and corporate Communications for ADC Therapeutics Nicole, please go ahead.
Thank you, operator.
Today we issued a press release announcing our third quarter, 2025 Financial results and business updates.
This release and the slide we will use in. Today's presentation are available on the investor section of the ADC Therapeutics website.
I'm joined on today's call by our chief executive officer. Amit Malik who will discuss our operational performance and recent business. Highlights our chief medical officer Muhammad Zaki who will discuss our clinical programs and updates followed by our key financial officer Pepe Carmona, who will review our third quarter of 2025 Financial results.
We will then open the call to questions.
Before we begin, I would like to remind listeners that some of the statements made during this conference call will contain forward-looking statements within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
Before looking statements are subject to certain known and unknown risks and uncertainties and actual results, performance and achievements could differ materially.
They are identified and described in the accompanying, slide presentation. And in the company's filings with the SEC, including form, 10K 10q and 8K.
ADC Therapeutics is providing this information as of today's date and is not undertake any obligation to update any forward-looking statements contained in this conference call as a result of new information, future events or circumstances, except as required by law.
The comedy classrooms investors not to place undue Reliance on these forward-looking statements.
Today's presentation also includes non-gaap financial reporting.
These non-gaap measures should be considered in addition to and not in isolation or as a substitute for the information prepared in accordance with gaps.
You should refer to the company's third quarter earnings release for information and Reconciliation of historical non-gaap measures to the corporate gaap Financial measures.
I will now turn the call over to our CEO, Ameet Mallik.
Thanks Nicole and hello everyone. Thank you for joining us on today's. Call in the third quarter of 2025, we continue to focus on execution and delivering on our commercial strategy.
Maintaining Zenlotta as a differentiated treatment option for third-line plus DLBCL patients while advancing data across key trials.
Net product revenues were $15.8 million in the third quarter, reflecting variability in customer ordering patterns and were broadly in line with the quarterly run rate over the past two years.
We continue to progress against our keys and lots of trials in second line, plus dlbcl and expect to share additional data in the coming months.
Update on voter 7, our phase 1B trial, evaluating sin. Lanta in combination with, the by specific antibody will fit the end of the year.
Then, in the first half of 2026, we plan to announce Topline results from Lotus. 5, our phase 3, confirmatory trial of Zen. Lotta in combination with vertex map wants the pre-specified number of PFS events is reached and data are available.
Within Endo lymphoma the lead investigator on the phase 2, IIT of Zen. Lotta in combination with vertex map recently presented, encouraging, updated, relapsed, or refractory follicular lymphoma data at the 22nd International workshop on.
The trials are on track to enroll 100 patients.
In addition, The Phase 2 IIT is in Latta and relapsed or refractory modules on the for continues to enroll to the Target of 50 patients.
Beyond and lot that we continued with IND enabling activities. For our psma targeting ABC, which are on track to be completed by the end of the year.
Lastly, just after the quarter end, we secured a $60 million private placement, led by TCGs, including participation from Redmouth Group and other existing investors.
This financing takes our expected cash Runway at least to 2028.
With our strength and balance sheet. I'm confident that we are well positioned to further investors in Atlanta as we anticipate advancing into earlier lines of therapy for dlbcl and into indolent lymphomas.
As a single-agent therapy for third-line plus DLBCL, it has a profile of rapid, deep, and durable efficacy, as well as manageable safety with simple and convenient administration.
Beyond our current indication. We believe in the potential to reach, significantly more patience by expanding use into earlier lines of therapy in dlbcl and into indoor lymphomas.
The data we've seen across these settings so far, has been consistently encouraging with the potential to be highly differentiated.
We continue to believe that through expansion into these settings, then L has the potential to reach Peak annual revenues of 600 million to 1 billion dollars in the US.
Our current indication has, as I noted earlier, shown relative stability in net revenues, over multiple quarters demonstrating. Zen Lanta has a clear place in the market as a monotherapy.
We Believe Lotus 5 has the potential to lift Peak annual revenue for Zen Lantana, to 200 to 300 million. As we expand into the second line. Setting, Not only would this double the addressable patient population but with an improved clinical profile versus our current indication as a monotherapy we expect to gain share in the second line plus setting and improved duration of therapy.
With Lotus 7, we estimate that we can expand the total opportunity for Zen Lantana and DLBCL to $500 million to $800 million in peak annual revenue, assuming both regulatory approval and compendia listing.
If the data continue to be compelling, we believe it's in Latta. Plus, GMAB has the potential to transform the future lymphoma treatment paradigm by becoming the preferred specific combination in the second-line DLBCL setting.
On top of this, we see additional potential for Xin Lantana in relapsed or refractory marginal zone lymphoma on the Forma and relapsed or refractory follicular lymphoma in Selma.
If the encouraging initial data in Phase 2 are maintained with larger patient numbers.
We believe these indented lymphomas could provide additional peak annual revenue for Lanta of $100 million to $200 million, with both regulatory approval and compendia listing, primarily driven by MZL.
Let's turn on a little more into the specifics of the dlbcl treatment landscape to explain why we believe Xin. Lanta has the opportunity to play a significant role.
In both the second and third line plus settings, there are 2 main segments.
The first segment includes complex therapies that require unique infrastructure and expertise to handle logistical requirements and patient management.
These are primarily confined to the academic centers and more sophisticated communities and includes therapies like carti transplant. And by specifics
the second segment, comprises more broadly accessible therapies which all Physicians can administer in the outpatient setting and includes adc's, monoclonal antibodies and chemotherapy.
Solution of the treatment landscape where we estimate. There is currently a 60/40 split between complex and broadly accessible segments.
In the second-line setting where specifics have not yet been approved, but were recently added to NCCN guidelines for use in combination, we expect that they will continue to gain, share, and grow the use of complex therapies.
Through Lotus 5 and Lotus 7, we believe is in La combinations, have the potential to raise the bar on efficacy and second line Plus bbcl in their respective. Treatments offering complimentary approaches to addressing unmet needs and Lotus. 5, our phase 3 confirmatory study. We are combining Zen with the most widely used agent redo in patients with second line plus dlbcl, as a, reminder initial data from the safety lead. In portion showed an overall response rate of 80% and a complete response rate of 50% with no new safety signals demonstrating that this combination has the potential to provide competitive second line. Plus efficacy, with a favorable safety profile, allowing broad accessibility
And load is 7, our Phase 1, B trial. We are combining Zen Lanta with the highly effective by specific low fidm map, in second line, plus patients.
Data presented in June at eha. And icml based on the April 2025 cutoff, showed the combination was generally, well, tolerated with a manageable safety profile.
Furthermore, we believe it, demonstrated clinically, meaningful benefit with an overall response rate of 93.3% and a complete response rate of 86.7% across 30 efficiency of valuable patients.
We are encouraged by the promising early data, which we believe demonstrates the potential for Z Plus B to be a best-in-class combination in a highly competitive market.
When you look at the CRA among both currently available and emerging Therapies in these 2 treatment segments, we believe the emerging clinical profile of Zen Lanta plus will fit in the Lotus 7 trial positions, us, well, among complex therapies and at the same time, the clinical profile of Zen Plus for toxin lab and the Lotus 5 trials. The potential to differentiate us among broadly accessible Therapies.
Together. We believe these combinations have the potential to double the addressable patient population as we move into the second line.
And increase the duration of therapy moving on average from 3 Cycles.
To 5 to 6 Cycles.
Now, I will turn the call over to our chief medical officer, Muhammad Zaki who will share the latest on the phase 2. Follicular lymphoma, IIT data, Muhammad.
Thank you, Amit. I am pleased to share updated data from The Phase 2 investigator initiated trial, over the law in combination with the toxin map, in relapse refractory fully can inform us.
The data we are presented in September as the 22nd International workshop on non-hazardous lymphoma by the lead investigator Dr. Juan Pablo Russia from the Z Lister cancer center, part of the University of Miami Miller School of Medicine,
That represented from the 55. Efficacy evaluation patients to date in this trial continues to administrate encouraging results with an overall response rate of 98.2%
And a complete response rate of 83.6%.
After median, follow-up of 28 months median, PFS was not reached.
and the 12 month PFS was 93.9%,
In this trial, no new safety signals were observed, and 60 was consistent with the norm profile of the longer.
The University of Miami is actively enrolling towards the target of 100, high risk. And after practicing, for a for a patient,
And is opening the study at additional us cancer, research centers.
As soon as sufficient data are available, we plan to assist in Regulatory and updated compendia pathways.
Now, I will turn the call over to Papeete hermano our CFO who will discuss Financial Financial results for the third quarter Pepe.
Thank you, Muhammad.
On the financial front, the long-term Network revenues in the third quarter of 2025, were 15.8 million as compared to 18 million dollars in the same quarter in 2024.
Google, operating expenses for the quarter, where 45 million on a non-gaap basis, representing a 12.1%. Net decrease over prior year,
the reduction was primarily driven by lower R&D expenses with sales and marketing expenses, stable year-over-year,
We continue to be disciplined in our Capital allocation towards potential value creation, while driving efficiencies across the portfolio.
On a GAP basis, we reported a net loss of $41 million for the second quarter of 2025, or $0.30 per basic and diluted share, compared to a net loss of $44 million, or $0.42 per basic and diluted share, for the same period in 2024.
The decrease in net loss for the quarter is, primarily attributable to lower and d and DNA expenses.
You can find the reconciliation of gaap to non-gaap measures for the third quarter and year to date in the compiling Financial tables of the press release issued earlier today, and Independence of this presentation,
At the end of the quarter, we had cash and cash equivalents of 234.7 million which compared to 250.9 million as of December, 31st 2024.
In October, we enter into a million dollar Pi financing, which on a performer basis, expanded our cash and cash equivalents to approximately 292.3 million as of that date.
This strengthening of our balance sheet allows us to execute our strategy with an expected cash, Runway ascending at least to 2028.
across a lot of
Programs. We expect to have data Catalyst in the remainder of 2025 and 2026 for Los 5. We expect to provide Topline data in the first half of 2026. Once the pre-specified number of PFS events is reached and data are available.
Surveying positive results and supplemental biologic. License applications submission to regulatory authorities will follow.
with potential confirmatory approvals in second line, plus the lbl as well as publication and compend the inclusion in the first half of 2027,
With lot of 7, following presentation of the data at eha and icml in June, we observed an acceleration in enrollment in the study at the selected 150 microgram per kilogram dose levels.
We plan to provide a clinical update on all efficacy available patients with a minimum of 6 months of follow-up.
Through our corporate announcement before the end of the year.
1. Sufficient data with longer follow-up are available. We plan to engage with the FDA.
In addition, assuming positive results, we plan to pursue publication and compel the inclusion in the first half of 2027.
Within the foreseen timeframe, we expect additional data to be shared at medical conferences by the leading investigators.
And we plan to assess Regulatory and competitive strategies on sufficient data are available.
Beyond that we continue to advance our expert and based psma, targeting ADC with completion of IMD, enabling activities, anticipated toward the end of this year.
I will now turn the call back over to Amite.
Thank you Pepe, let me close by saying that I'm pleased with how we are executing against our strategy and continue to be excited by the consistently encouraging zenata. We are generating across our ongoing trials,
We have a Clear Vision to unlock the true potential of the company with multiple potential value, creating Milestones ahead and a balance sheet that enables us to deliver on our strategy. We can now open the line for questions, operator,
Thank you, ladies and gentlemen, we will now begin the question and answer session to do you have a question please press star followed by the 1 on your touchtone phone, you will hear a prompt that your hand has been raised. Should you wish to decline from the polling process? Please press star followed by the 2?
Your line is now open.
Well, thanks for taking my question. Um, maybe I'm maybe I'll load a 7 intrigued by Peppa's comments, that we're seeing accelerated enrollment posts that the June data release not not surprising of course, but can you frame? How many patients we might get later this quarter and then in terms of your target enrollment as 100 or so patients, are you adjusting that Target? And is it possible that that Target could be uh, achieved sooner rather than later? Thank you.
Thanks for the question. Uh, Eric. Um yeah now we're we've been pleased that since the eha and icml update. Uh, we've had even greater interest in the trial and enrollments, definitely accelerated. We're still targeting the Ross Lake. 100 patients that we've been targeting to enroll it. It will occur quicker than when we originally anticipated. We're not giving you an exact timeline. We're still confirming the first half of of next year, to have that completed.
And then, in terms of the upcoming, uh, data release a meter, you still targeting 40 or 40 plus.
Well, we'll give you, you know, as you recall we, um...
Where we originally enrolled 20 patients in each dose, and then we continued to expand at the 150 dose, right? So,
It'll clearly be more than the original 20 and 20, but it won't be fully all 100. And also, I want to make sure you heard what Pepe said.
We're going to be sharing um, update on all efficacy valuable patients with a minimum of 6 months, follow-up.
This is because it provides more stable, meaningful updates both in terms of the adaptive response but also the durability of the response that was issued in the real call. Some of the questions we received at the early updates were that we have a very limited follow-up. So now, we're focusing on where the data is more stable, and that's really where patients have a minimum of 6 months' follow-up.
Okay, thank you very much.
Your next question comes from Clara dong with Jeffrey's your line is now open.
Hi, good morning, thanks for taking our questions. This is Jenna lie on the line. Um, could you talk about, um, in the context of the upcoming notice 5 and notice 7 data and the submission timelines? Um,
Once you expect to see an inflection point for the lunch sales, and could you also give some qualitative comment on the pace of revenue ramp-up? Um, once you have those potentially positive data or approval in hand. Thank you so much.
Okay, so I think you're asking about the mob stones, and then also the Revenant selection. So first, I would say, you know, for a Lotus 7 we expect to share an interim update on data later this year. Um, and obviously, we expect to have
full data, uh, sometime by the end of next year, or into the first half of 2027, if you can see what we guided to is publication, and our companion inclusion, sometime between the end of next year, and the first half of 2027,
With 5 we expect to share Topline results in the first half of 2026.
And then have approval um sometime in the first half of 2027. So if you get the revenue ramp up for those to
fall in depending the inclusion and approvals which we expect for both the first half of 2027,
We expect revenues to ramp up, you know, subsequent to that.
Um, so sorry, just a quick follow-up. Um, can you, uh, did you also have any comments on the pace of ramp-up following? Um,
H first have 27.
yeah, I mean, I I don't want to guide to the exact ramp up, but I will say is that if you look at other
Launches whether it's the buy specifics or polivy in the front line or others, I would say the majority of the ramp up happens during the first 2 years post.
Post, you know, launch or approval or a competitive listing of a new indication is typically the majority that's going to happen in the first 2 years.
That's the problem. Thank you so much.
Your next question comes from Michael Schmidt. With Google Haim Security's, your line is now open.
Hey, this is Sarah on from Michael. Um, thanks so much for taking my question. I just wanted to get your thoughts on, uh, you know, with these newer agents moving into frontline DLBCL. Um, is that something that you are or would consider pursuing first in Atlanta? Thanks so much.
Only a couple of years ago, you saw Paul of the archip.
Um, get get approval. Um, and that was based on, you know, a marginal Improvement in PFS, without an overall survival benefit. But of course, the safety look good. And that's been actually pretty widely adopted. So front line is a high bar is my point. Um,
1 of the biggest things being studied right now are by specifics. Um, and I think there's some excitement about if, if those could have potential still to be determined. I think we're still a little bit of ways away from seeing those readouts, and the terms of our future,
Developments. We'll consider how that goes, you know, for this combination post to read out of the 100 patients, and I've seen any support we depend on a part or two. I don't see us likely finding a Phase 3 study with us in the front line or the second line setting with this combination clearly on our own.
Thanks so much.
Yeah, we're we're we're we're watching the space close closely.
Your next question comes from Leonid.
Timashev, with RBC Capital markets, your line is now open.
Hey, thanks for taking my question. I just want to ask, um, sort of the split of community and academic. I know you've talked about Lotus 5 potentially being more position in the broadly applicable therapies and Lotus 7 more for um, you know, the academic. But I I guess I'm curious how neat you think those breakdowns actually are going to be and sort of how you're going to balance. Ultimately you know where patients are found and how you want to focus, your sales force across um academic and Community, sort of pursue pursue the opportunity where it is. Thanks.
Yeah, so I would I would do the the breakdown in terms of academic Community. Would I say, is for the more complex therapies, you know, whether it's carti or vice versa,
Um so let's just talk about by specific because that's more applicable to low 7. They're not only used across all these, they are used in more, sophisticated community centers, and that may grow over time. So I wouldn't say it's a distinction of purely.
You know, Community versus academic. It's more of all of the academic can administer, those products, and a portion of the community can administer those products.
in that Universe of Institutions that can administer with the product, obviously, low to 7 is going to have a clear place
Then there's other therapies like chemotherapy adc's antibodies which are more broadly accessible and those can be administered across all settings, but they are still administered in the academic centers and their administrative and all the community settings. So I wouldn't differentiate to say low to 7 is going to be purely, you know, academic and lowest. As far as I can be truly Community. The reality is lotus 7.
When a patient is suitable for it and it and the facility can administer the therapy, you're going to go with the highest efficacy product get accommodation that you can go with. We think Lotus 7 is really well, positioned and that will be used again in all the academic centers and a portion of the community. Exactly. How much we'll see over time how you know basically it adopted by the community.
With Lotus 5, either because of accessibility of the therapy or because of suitability for the patient, remember there's some patients that...
Have comorbidities, um, or other conditions, which may prevent that from getting interim based therapy, subsequent, they may be a postcard to patient that's at risk of infection. It may be a patient with autoimmune disease. It may be other reasons, why you're not going to want to give a box specific based therapy and for other, uh, centers in the community. They're not going to have access to them. And so, for all those reasons, we think Lotus 5 still plays a big role. We still see our based chemo regimens having a large share in the roster Factory Market.
So we think we have a good place, and that's really our strategy: to hopefully have leading efficacy in both of these segments—both the complex therapies and the more broadly accessible therapies.
Ladies and gentlemen, as a reminder, should you have a question please? Press star 1. Your next question comes from Sudan, Logan, Nathan with Stevens. Your line is now open.
Yeah, so I would say, you know, to answer your first question about what's a SharePoint worth?
So think about in the second line saying there's about 12,000 patients in the US and then the third line plus setting. There's 6,000 patients
So depending on where you're getting the shares, the second highest setting or third line plus every SharePoint obviously, multiplied by the number of patients.
With monotherapy. Um, we're typically seeing 3 Cycles. Now remember the first 2 doses of our product are at 150 micrograms per kilogram, and then it drops to 75. So it's weight based. But often times, it can be too vile for the first 2 cycles and drop to 1 file.
What we're seeing with lotus 5 and load is 7 is you know somewhere between 5 to 6 Cycles. So you can just do this also in calculation on Miles and then you know what, our our our net price and our growth price is in the upper 20s thousands that price is in the lower 20,000. So if you if you if you do the kind of calculation depending on what if you're talking about a SharePoint the second line or the third line plus setting that kind of gives you a a rough estimate just by way of example like in the load is 5. For example, if we were able to maintain our roughly 10% Cherry that we have in the third line plus setting and translate that into second line setting, but with increased duration of therapy in our net pricing, that would take our product, which is on our property. 70 million our run rate is what it's kind of been the last couple years.
To just over 29. Obviously we were hoping with epicc improvements. You actually gained share and that's what leads to the guys 2 to 300 way. You can do similar calculations for load of 7.
Um, now turning to the indolent lymphomas.
I think we're excited about the data that, you know, Muhammad spoke about with the last refractory follicular.
And will last for fracturing modules on the phone with data that was presented at EA. And icml, I think both right now are showing outstanding results.
I would say in terms of the opportunity for potential adoption, you know, right now we're basically funded
To try to get into Campania for both.
Um, so obviously we won't promote either of these indications, but what I could say is,
The unmet need and the level of competition is probably higher. Um I might need this higher and MCL on the level of competition is lower in MCL versus that's why we've emphasized that 1 a bit more. Um, when you look at the different agents that are approved during compendia,
the fcr rates are 29% roughly 30%, even if you look at subsequent data that's come out, maybe a bit higher than that. But we've been showing is closer to 70% Crescent in that in that MCL setting in particular, although the data is outstanding and we we hope to have a a place there, it's a lot more competitive. There's there's literally more than 10 agents that have phase 3 trials, including the buy specific, and many other agents.
Who have large Phase 3 studies with overall survival, and it's just a more competitive space. That's why we think the potential for uptake is just smaller, not because the data isn't excellent, but just because it's a much more competitive space.
Don't know further questions. At this time, I will not turn the call over to a meet my list for closing remarks.
Well, I want to thank you all for joining our call today. We really appreciate the questions and we appreciate your continued support. We look forward to keeping you updated on our progress.
Operator, you may not end the call.
Ladies and gentlemen, this concludes your conference call for today. We thank you for participating. Please disconnect your lines.