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Investing.com - Guggenheim has reiterated a Buy rating and $10.00 price target on ADC Therapeutics (NYSE:ADCT) following the company’s third-quarter results and pipeline update.
ADC Therapeutics reported its financial results and provided updates aligned with previous disclosures, including details on its pipeline streamlining and recent financing activities. The company secured $100 million in June through a PIPE financing, followed by an additional $60 million in October, positioning its lead product Zynlonta at the center of its development strategy.
Multiple Zynlonta indication expansion studies are underway with near-term milestones approaching. The confirmatory Phase 3 LOTIS-5 study, evaluating Zynlonta plus rituximab in relapsed/refractory diffuse large B-cell lymphoma (DLBCL), is expected to deliver topline results by the first half of 2026 to support a supplemental Biologics License Application.
The Phase 1b LOTIS-7 study, combining Zynlonta with Roche’s Columvi in relapsed/refractory DLBCL, previously showed strong data at the European Hematology Association meeting, with additional disclosures for a larger patient population anticipated before year-end 2025. The company also presented data on Zynlonta in marginal zone lymphoma and follicular lymphoma at recent scientific conferences.
ADC Therapeutics ended the third quarter with $234.7 million in cash and equivalents, maintaining its previous guidance of financial runway into 2028. The company also confirmed its PSMA-targeted antibody-drug conjugate remains on track to reach IND-readiness by the end of 2025, with ongoing partnership discussions.
In other recent news, ADC Therapeutics has secured $60 million through a private investment in public equity (PIPE) financing from institutional investors, including TCGX and Redmile Group. The company is selling 11.3 million common shares at $4.00 per share and pre-funded warrants for 3.8 million common shares at $3.90 per warrant. This transaction is anticipated to close on October 27, 2025, pending customary conditions. Following this financing agreement, H.C. Wainwright lowered its price target for ADC Therapeutics from $8.00 to $7.00, although it maintained a Buy rating on the stock. The research firm had previously reiterated an $8.00 target based on updated timelines for the LOTIS-5 and LOTIS-7 clinical trials. Notably, additional data from the LOTIS-7 trial is expected in the second half of 2025. The trial is evaluating ZYNLONTA in combination with other therapies for relapsed/refractory B-cell non-Hodgkin lymphoma. These developments reflect ongoing adjustments and strategic moves by ADC Therapeutics.
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