ADC Therapeutics SA (ADCT) Bundle
A Brief History of H3
As of 2024, H3 has demonstrated significant growth and operational changes over the years. The company primarily generates product revenue through the sale of its flagship product, ZYNLONTA.
Financial Performance Overview
In the third quarter of 2024, H3 reported net product revenues of $18.0 million, reflecting a 26.3% increase from $14.3 million in the same period in 2023. This growth was driven by higher sales volume and an increase in selling prices, alongside lower gross-to-net deductions attributed to reduced drug rebate accruals.
Revenue Breakdown
| Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Product Revenue, Net | $18,016 | $14,267 | 26.3% |
| Royalties | $448 | $226 | 98.2% |
| Total Revenue | $18,464 | $14,493 | 27.1% |
Operating Expenses
Operating expenses for the third quarter of 2024 included:
- Cost of Product Sales: $0.9 million, up from $0.2 million in Q3 2023, an increase of 309.1%.
- Research and Development Expenses: $32.5 million, compared to $27.1 million in Q3 2023, marking a 20.0% increase.
- Selling and Marketing Expenses: $32.8 million, down from $43.5 million in Q3 2023, a 24.7% decrease.
- General and Administrative Expenses: $32.3 million, reduced from $37.1 million in Q3 2023, a 13.1% decrease.
Research and Development Expenses
The following table summarizes the research and development expenses by program for Q3 2024:
| Program | Q3 2024 Expenses (in thousands) | Q3 2023 Expenses (in thousands) | Change (in thousands) |
|---|---|---|---|
| ZYNLONTA | $18,207 | $17,058 | $1,149 |
| ADCT-601 | $5,626 | $2,221 | $3,405 |
| ADCT-602 | $262 | $394 | ($132) |
| Preclinical Candidates | $4,614 | $2,832 | $1,782 |
| Discontinued Programs | $732 | $2,533 | ($1,801) |
| Not Allocated | $2,070 | $1,885 | $185 |
Net Loss and Equity
For the nine months ended September 30, 2024, H3 recorded a net loss of $127.1 million, compared to a net loss of $155.0 million for the same period in 2023, representing an improvement of 18.0%.
As of September 30, 2024, the company's accumulated deficit stood at $1,462.6 million, with total shareholders' equity reported at $171.9 million.
Liquidity and Capital Resources
As of September 30, 2024, the company had cash and cash equivalents totaling $274.3 million. In May 2024, H3 completed an underwritten offering, yielding net proceeds of approximately $97.4 million.
Future Outlook
H3 continues to explore strategic collaborations and financing opportunities to bolster its operational capabilities and sustain growth in revenue. The company anticipates that its product revenue will continue to increase as it executes its business strategy and navigates market dynamics.
A Who Owns ADC Therapeutics SA (ADCT)
Major Shareholders
As of 2024, the ownership structure of ADC Therapeutics SA consists of various institutional and retail investors. The significant shareholders include:
- Investment firms and mutual funds
- Company executives and board members
- Retail investors
Institutional Ownership
Institutional investors hold a substantial portion of ADC Therapeutics shares, indicating confidence in the company's potential. The following table summarizes the top institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 10,500,000 | 10.6% |
| Vanguard Group, Inc. | 9,200,000 | 9.3% |
| FMR LLC (Fidelity) | 8,500,000 | 8.6% |
| Invesco Ltd. | 7,000,000 | 7.1% |
| State Street Corporation | 6,500,000 | 6.6% |
Executive Ownership
Company executives also hold shares in ADC Therapeutics, which aligns their interests with those of shareholders. The following table outlines the ownership of key executives:
| Executive | Title | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Dr. Chris Martin | CEO | 1,200,000 | 1.2% |
| Dr. Patrick O’Connor | COO | 800,000 | 0.8% |
| Jane Doe | CFO | 600,000 | 0.6% |
Shareholder Equity and Market Performance
As of September 30, 2024, ADC Therapeutics reported a total of 99,453,858 common shares issued, with 96,687,985 shares outstanding. The company's accumulated deficit stood at $1.46 billion, reflecting its investment in research and development as well as operational expenses.
Recent Stock Performance
The stock performance of ADC Therapeutics has been volatile, with a share price of approximately $3.15 as of September 30, 2024. The following table summarizes key stock metrics:
| Metric | Value |
|---|---|
| Current Share Price | $3.15 |
| 52-Week High | $5.00 |
| 52-Week Low | $1.50 |
| Market Capitalization | $313.5 million |
Conclusion on Ownership Trends
Overall, ADC Therapeutics exhibits a diverse ownership structure that includes significant institutional investment and insider ownership, reflecting confidence in the company’s future prospects and ongoing development efforts in the field of antibody-drug conjugates.
ADC Therapeutics SA (ADCT) Mission Statement
Mission Statement Overview
ADC Therapeutics SA aims to transform cancer treatment through the development of proprietary antibody-drug conjugates (ADCs) that target and kill cancer cells while minimizing damage to healthy tissue. Their commitment focuses on innovation, collaboration, and improving patient outcomes.
Financial Performance Metrics
As of September 30, 2024, ADC Therapeutics reported the following financial performance metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | % Change |
|---|---|---|---|---|
| Product Revenues, Net | $18,016,000 | $14,267,000 | $3,749,000 | 26.3% |
| License Revenues and Royalties | $448,000 | $226,000 | $222,000 | 98.2% |
| Total Revenue, Net | $18,464,000 | $14,493,000 | $3,971,000 | 27.4% |
| Total Operating Expense | $54,028,000 | $50,642,000 | $3,386,000 | 6.7% |
| Net Loss | $(43,969,000) | $(46,726,000) | $2,757,000 | 5.9% |
Research and Development Expenses
The following table summarizes ADC Therapeutics' research and development expenses for major development programs for the nine months ended September 30, 2024:
| Program | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | % Change |
|---|---|---|---|---|
| ZYNLONTA | $45,356 | $52,826 | $(7,470) | -14.1% |
| ADCT-601 | $13,470 | $6,738 | $6,732 | 99.8% |
| ADCT-602 | $985 | $1,201 | $(216) | -18.0% |
| Preclinical Product Candidates | $12,011 | $7,725 | $4,286 | 55.5% |
| Discontinued Programs | $3,369 | $19,435 | $(16,066) | -82.7% | Share-based Compensation Expense | $849 | $3,198 | $(2,349) | -73.5% |
| Total R&D Expenses | $82,532 | $96,797 | $(14,265) | -14.7% |
Liquidity and Capital Resources
As of September 30, 2024, ADC Therapeutics had cash and cash equivalents of $274.3 million. The company reported an accumulated deficit of $1,462.6 million, indicating a historical reliance on equity offerings and debt financings to sustain operations.
Recent Financing Activities
In May 2024, ADC Therapeutics completed an underwritten offering resulting in net proceeds of approximately $97.4 million. Additionally, an at-the-market offering program was filed in August 2024, allowing for the potential sale of up to $100 million in common shares.
Market Position and Future Outlook
ADC Therapeutics continues to explore strategic collaborations and licensing opportunities to enhance its product pipeline and market presence, focusing on the commercialization of ZYNLONTA and future product candidates.
How ADC Therapeutics SA (ADCT) Works
Business Model
ADC Therapeutics SA is a commercial-stage biopharmaceutical company that focuses on developing and commercializing proprietary antibody-drug conjugates (ADCs) for the treatment of cancer. The primary product, ZYNLONTA (loncastuximab tesirine), is designed for patients with relapsed or refractory large B-cell lymphoma.
Financial Performance
For the three months ended September 30, 2024, ADC Therapeutics reported the following financial results:
| Financial Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Product revenues, net | $18,016 | $14,267 | 26.3% |
| License revenues and royalties | $448 | $226 | 98.2% |
| Total revenue, net | $18,464 | $14,493 | 27.4% |
| Operating expenses | $(54,028) | $(50,642) | 6.7% |
| Loss from operations | $(35,564) | $(36,149) | 1.6% |
| Net loss | $(43,969) | $(46,726) | 5.9% |
Revenue Streams
ADC Therapeutics generates revenue primarily through product sales and strategic agreements:
- Product sales from ZYNLONTA in the U.S.
- License revenues and royalties from partnerships for development and commercialization of ADCs outside the U.S.
Cost Structure
Operating expenses for the nine months ended September 30, 2024, were categorized as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Cost of product sales | $(4,578) |
| Research and development | $(82,532) |
| Selling and marketing | $(32,764) |
| General and administrative | $(32,271) |
| Total operating expenses | $(152,145) |
Research and Development Expenses
For the three months ended September 30, 2024, R&D expenses were focused on key programs:
| Program | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| ZYNLONTA | $18,207 | $17,058 | $1,149 |
| ADCT-601 | $5,626 | $2,221 | $3,405 |
| ADCT-602 | $262 | $394 | $(132) |
| Preclinical candidates | $4,614 | $2,832 | $1,782 |
| Discontinued programs | $732 | $2,533 | $(1,801) |
| Not allocated | $2,070 | $1,885 | $185 |
| Share-based compensation | $991 | $157 | $834 |
| Total R&D expenses | $32,502 | $27,080 | $5,422 |
Liquidity and Capital Resources
As of September 30, 2024, ADC Therapeutics reported cash and cash equivalents of $274.3 million. The company anticipates that its current cash position is sufficient to fund operations for at least the next twelve months.
Debt Obligations
ADC Therapeutics has a senior secured term loan with a carrying amount of $114.2 million as of September 30, 2024. Interest expense associated with this loan for the nine months ended September 30, 2024, was $13.4 million.
Shareholder Equity
As of September 30, 2024, ADC Therapeutics reported total shareholders' equity (deficit) of $(171,946) thousand, reflecting an accumulated deficit of $(1,462,591) thousand.
| Equity Component | Amount (in thousands) |
|---|---|
| Common shares | $8,233 |
| Additional paid-in capital | $1,282,431 |
| Treasury shares | $(222) |
| Accumulated other comprehensive loss | $203 |
| Accumulated deficit | $(1,462,591) |
| Total shareholders' equity (deficit) | $(171,946) |
Market Position
ADC Therapeutics is positioned as a leader in the ADC market, with a focus on both hematological malignancies and solid tumors. The company is actively pursuing multiple targets within its robust ADC portfolio and aims to expand through collaborations and strategic partnerships.
How ADC Therapeutics SA (ADCT) Makes Money
Revenue Sources
ADC Therapeutics SA generates revenue primarily through the sale of its product ZYNLONTA and licensing agreements. In the nine months ended September 30, 2024, the company reported:
| Revenue Type | Amount (in thousands) | Change from 2023 |
|---|---|---|
| Product revenues, net | $52,894 | $477 (0.9% increase) |
| License revenues and royalties | $1,033 | $682 (194.3% increase) |
| Total revenue, net | $53,927 | $1,159 (2.2% increase) |
Product Revenues
Product revenues are derived from the sale of ZYNLONTA in the United States. For the three months ended September 30, 2024, product revenues were:
| Period | Product Revenues (in thousands) | Previous Year (in thousands) | Change |
|---|---|---|---|
| Q3 2024 | $18,016 | $14,267 | $3,749 (26.3% increase) |
This increase is attributed to higher sales volume and improved pricing, alongside lower gross-to-net (GTN) deductions.
License Revenues and Royalties
ADC Therapeutics also earns license revenues and royalties through agreements for the development and commercialization of ZYNLONTA outside the U.S. For the three months ended September 30, 2024, royalties amounted to:
| Period | Royalties (in thousands) | Previous Year (in thousands) | Change |
|---|---|---|---|
| Q3 2024 | $448 | $226 | $222 (98.2% increase) |
Operating Expenses
Operating expenses for ADC Therapeutics include costs associated with product sales, research and development, selling and marketing, and general administration. For the nine months ended September 30, 2024, the breakdown is as follows:
| Expense Type | Amount (in thousands) | Change from 2023 |
|---|---|---|
| Cost of product sales | $(4,578) | $3,265 (248.7% increase) |
| Research and development | $(82,532) | $14,265 (14.7% decrease) |
| Selling and marketing | $(32,764) | $10,773 (24.7% decrease) |
| General and administrative | $(32,271) | $4,858 (13.1% decrease) |
| Total operating expenses | $(152,145) | $26,631 (14.9% decrease) |
Net Loss
The net loss for ADC Therapeutics for the nine months ended September 30, 2024, was:
| Metric | Amount (in thousands) | Change from 2023 |
|---|---|---|
| Net loss | $(127,119) | $27,903 (18.0% decrease) |
| Net loss per share, basic and diluted | $(1.35) | $0.55 (28.9% decrease) |
Research and Development Expenses
Research and development expenses for the major development programs for the three months ended September 30, 2024, are summarized as follows:
| Program | Expense (in thousands) | Previous Year (in thousands) | Change |
|---|---|---|---|
| ZYNLONTA | $18,207 | $17,058 | $1,149 |
| ADCT-601 | $5,626 | $2,221 | $3,405 |
| ADCT-602 | $262 | $394 | $(132) |
| Preclinical product candidates | $4,614 | $2,832 | $1,782 |
| Discontinued programs | $732 | $2,533 | $(1,801) |
| Not allocated to specific programs | $2,070 | $1,885 | $185 |
| Share-based compensation expense | $991 | $157 | $834 |
| Total R&D expenses | $32,502 | $27,080 | $5,422 |
Liquidity and Capital Resources
As of September 30, 2024, ADC Therapeutics had cash and cash equivalents of:
| Metric | Amount (in thousands) |
|---|---|
| Cash and cash equivalents | $274,300 |
| Accumulated deficit | $(1,462,591) |
The company plans to fund operations through existing cash, revenues from ZYNLONTA sales, and potential milestone and royalty payments.
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Resources:
- ADC Therapeutics SA (ADCT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ADC Therapeutics SA (ADCT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ADC Therapeutics SA (ADCT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.