10-Q - ADC Therapeutics SA (0001771910) (Filer)

Wed, May 14, 8:11 PM (38 days ago)

**ADC Therapeutics SA (ADCT) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue was $23.0 million, up 27.6% from $18.1 million in Q1 2024. Product revenue slightly decreased by 2.5% to $17.4 million, while license revenues and royalties surged by $5.4 million due to a milestone payment related to ZYNLONTA's conditional approval in Canada. - **Profit Margins:** ADC Therapeutics reported a net loss of $38.6 million, an improvement of 17.2% from the $46.6 million loss in Q1 2024. The loss per share was $0.36, down from $0.56 in the previous year. - **Cash Flow:** The company used $56.3 million in cash for operating activities, an increase of $12.2 million from Q1 2024, primarily due to higher operating expenses and timing of payments. - **Earnings Changes:** The company's earnings improved due to increased revenues and cost-cutting measures, despite higher research and development expenses. **Operational Trends and Uncertainties:** - **Product Performance:** ZYNLONTA, the flagship product, saw a slight decrease in sales volume but benefited from a higher price and favorable gross-to-net sales adjustments. - **Research and Development:** R&D expenses increased by 12.4% to $28.9 million, driven by investments in next-generation ADCs and the ZYNLONTA program. - **Future Operations Impact:** ADC Therapeutics plans to continue funding operations through existing cash reserves, product sales, and potential financing or collaborations. The company is exploring strategic partnerships for its early-stage research pipeline and clinical development of ZYNLONTA. **Key Metrics:** - **Cash and Cash Equivalents:** $194.7 million as of March 31, 2025, down from $250.9 million at the end of 2024. - **Operating Expenses:** Total operating expenses were $51.5 million, slightly down from $51.7 million in Q1 2024. - **Debt Obligations:** The company has significant debt obligations, including a senior secured term loan and a deferred royalty obligation, which impact its financial flexibility. **Conclusion:** ADC Therapeutics SA showed improved financial performance in Q1 2025, driven by increased revenues and cost management. However, the company continues to face challenges related to high operating expenses and debt obligations. The focus on strategic partnerships and the development of next-generation ADCs will be crucial for future growth and sustainability.