On November 9, 2026 ADC Therapeutics SA (NYSE: ADCT) reported full financial results for the third quarter ended September 30, 2026, and provided recent operational updates.
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
"During the third quarter, we made meaningful progress toward strengthening ADC Therapeutics’ balance sheet and increasing strategic optionality while advancing clinical opportunities for ZYNLONTA," said Ameet Mallik, Chief Executive Officer of ADC Therapeutics. "In addition, we continue to deliver on sales while focusing on opportunities to expand ZYNLONTA’s role in the treatment of B-cell malignancies to drive growth. With multiple abstracts accepted for presentation at ASH (Free ASH Whitepaper), including the full results from LOTIS-7, we look forward to highlighting the breadth of ZYNLONTA’s clinical potential at this meeting."
"As treatment options for patients with B-cell malignancies continue to evolve, we believe ZYNLONTA has an opportunity to play an important role in addressing significant unmet needs," said Mohamed Zaki, M.D., Ph.D., Chief Medical Officer of ADC Therapeutics. "The upcoming LOTIS-7 Phase 1b and marginal zone lymphoma IIT data at ASH (Free ASH Whitepaper) highlights the potential for ZYNLONTA to play an important role in the treatment of r/r DLBCL and indolent lymphomas. We plan to use these findings to guide our clinical development priorities and regulatory strategy."
Third Quarter 2026 Operational Updates and Recent Milestones
Strategic financial restructuring strengthens balance sheet and supports continued investment in ZYNLONTA. In October 2026, the Company announced a comprehensive strategic financial restructuring that included an $86.6 million private investment in public equity (PIPE) financing with participation from new investor Bain Capital Life Sciences and existing investors Redmile, TCGX, and Nantahala Capital. As part of the PIPE, approximately 12.9 million common shares were issued, as well as 48 million warrants with a strike price of CHF 0.08. The Company also amended its HealthCare Royalty financing agreement to eliminate a $150 million change-of-control payment, amended its senior secured loan agreement to reduce outstanding principal by $68.5 million to $50 million, eliminated scheduled principal amortization and removed the minimum liquidity covenant.
These transactions strengthened the Company’s capital structure, enhanced strategic optionality and extended the expected cash runway into 2029.
Multiple ZYNLONTA abstracts, including five oral presentations, to be presented at the 68th American Society of Hematology (ASH) (Free ASH Whitepaper) Annual Meeting. Multiple abstracts highlighting ZYNLONTA’s potential across multiple B-cell malignancies have been accepted for presentation at ASH (Free ASH Whitepaper) in December. Oral presentations will feature updated results from the Phase 1b LOTIS-7 trial evaluating ZYNLONTA in combination with glofitamab in relapsed or refractory large B-cell lymphoma; full results from the Phase 3 LOTIS-5 trial evaluating ZYNLONTA in combination with rituximab in relapsed or refractory diffuse large B-cell lymphoma (DLBCL); and investigator-initiated studies (IITs) in marginal zone lymphoma, mantle cell lymphoma and Waldenström macroglobulinemia.
Continued progress toward potential commercialization of ZYNLONTA in Japan. ADC Therapeutics’ Japanese licensing partner, Tanabe Pharma Corporation (formerly Mitsubishi Tanabe Pharma Corporation), has submitted a marketing authorization application with Japan’s Ministry of Health, Labor and Welfare for ZYNLONTA to treat patients with relapsed or refractory DLBCL after two or more lines of systemic therapy. Tanabe Pharma has also entered into an exclusive sublicensing agreement with Nippon Shinyaku Co., Ltd., for the commercialization of ZYNLONTA in Japan.
Third Quarter 2026 Financial Results
Product Revenues: Net product revenues were $21.0 million and $59.7 million for the third quarter and nine months ended September 30, 2026, as compared to $15.8 million and $51.2 million for the same periods in 2025. The increase period-over-period was primarily driven by volume increase.
License Revenues and Royalties: License revenue and royalties were $0.7 million and $2.1 million for the third quarter and nine months ended September 30, 2026, as compared to $0.7 million and $7.1 million for the same periods in 2025. The decrease for the nine-month period was primarily driven by a prior-year milestone received from our partner.
Cost of Product Sales: Cost of product sales was $2.0 million and $7.9 million for the third quarter and nine months ended September 30, 2026, as compared to $1.2 million and $4.1 million for the same periods in 2025. The increase in cost of product sales was primarily attributable to a change in focus of certain personnel costs from research and development clinical supply activities to commercial manufacturing activities.
Research and Development (R&D) Expense: R&D expense was $14.7 million and $52.0 million for the third quarter and nine months ended September 30, 2026, as compared to $26.8 million and $85.8 million for the same periods in 2025. The decrease in R&D costs was primarily driven by a reduction in spending on discontinued programs, completion of the IND-enabling activities for our PSMA-targeting ADC and lower ZYNLONTA spend. The decrease was also driven by a shift of certain personnel costs reflecting a change in focus from research and development activities toward commercial manufacturing and fulfillment activities. A total of $1.7 million for the quarter and $5.5 million for the nine-month periodwas allocated to cost of product sales ($1.0 million QoQ/$3.3 million YoY), inventory capitalization and selling and marketing expense.
Selling and Marketing (S&M) Expense: S&M expense was $8.7 million and $34.0 million for the third quarter and nine months ended September 30, 2026, as compared to $10.7 million and $31.4 million for the same periods in 2025. The decrease quarter-over-quarter was primarily due to lower marketing and advertising expenses. The increase for the nine-month period was primarily driven by higher cash-based retention and incentive awards.
General & Administrative (G&A) Expense: G&A expense was $10.7 million and $30.3 million for the third quarter and nine months ended September 30, 2026, as compared to $8.3 million and $27.1 million for the same periods in 2025. The increase period-over-period was primarily due to increased professional expenses, cash-based retention awards and share-based compensation expense, partially offset by lower wages and benefits.
Restructuring, impairment and other related costs: In connection with the strategic reorganization and workforce reduction announced in June 2026, we recognized $0.1 million in expense reversal for the third quarter and $2.6 million in employee severance and related benefit costs for the nine months ended September 30, 2026. In connection with the strategic reprioritization and restructuring plan announced in June 2025, we incurred $0.4 million and $13.5 million in restructuring, impairment and other related costs for the third quarter and nine months ended September 30, 2025, which consisted of $6.2 million in employee severance and related benefit costs, $6.4 million in non-cash impairment of assets and $0.8 million in retirement costs in connection with the close down of the UK facility.
Total Operating Expenses and Adjusted Total Operating Expenses: Total operating expenses were $36.1 million and $126.8 million for the third quarter and nine months ended September 30, 2026, as compared to $47.4 million and $161.9 million for the same periods in 2025, a reduction of 24% and 22%, respectively. On a non-GAAP basis, total adjusted operating expenses were $32.1 million and $112.1 million for the third quarter and nine months ended September 30, 2026, as compared to $45.0 million and $141.9 million for the same periods in 2025, a reduction of 29% and 21%, respectively. The reduction in total adjusted operating expenses was primarily driven by lower R&D expenses.
Net Loss and Adjusted Net Loss: Net loss for the third quarter and nine months ended September 30, 2026, was $25.3 million or $74.8 million, or a net loss of $0.16 and $0.48 per basic and diluted share, as compared to a net loss of $41.0 million and $136.2 million, or a net loss of $0.30 and $1.14 per basic and diluted share, for the same periods in 2025. On a non-GAAP basis, adjusted net loss for the third quarter and nine months ended September 30, 2026, was $8.8 million and $44.8 million, or a net loss of $0.06 and $0.29 per basic and diluted share, as compared to a net loss of $25.5 million and $78.2 million, or a net loss of $0.19 and $0.66 per basic and diluted share, for the same periods in 2025. The lower net loss and adjusted net loss were primarily due to lower operating expenses and, on a per basic and diluted share basis, by a higher number of weighted average shares outstanding. Net loss was also favorably impacted by the change in fair value of warrants and the cumulative catch-up adjustment of the Company’s deferred royalty obligation.
Cash and Cash Equivalents: As of September 30, 2026, cash and cash equivalents were $189.2 million, compared to $261.3 million as of December 31, 2025, a change primarily driven by cash used in operations. The Company has an expected cash runway into 2029.
(Press release, ADC Therapeutics, NOV 9, 2026, View Source [SID1234674460])