ADC Therapeutics Sells Zynlonta Royalty Rights for $100M

Ticker: ADCT · Form: 8-K · Filed: Apr 9, 2024 · CIK: 1771910

Adc Therapeutics SA 8-K Filing Summary
FieldDetail
CompanyAdc Therapeutics SA (ADCT)
Form Type8-K
Filed DateApr 9, 2024
Risk Levelmedium
Pages2
Reading Time2 min
Sentimentneutral

Sentiment: neutral

Topics: royalty-sale, financing, drug-commercialization

Related Tickers: LYEL

TL;DR

ADC Therapeutics cashes in $100M for Zynlonta royalties, plus potential $200M more.

AI Summary

ADC Therapeutics SA announced on April 9, 2024, that it has entered into a definitive agreement to sell its royalty rights for Zynlonta to an affiliate of Lyell Immunoscience for an upfront payment of $100 million. The company may also receive up to an additional $200 million in potential milestone payments. This transaction is expected to close in the second quarter of 2024.

Why It Matters

This sale provides ADC Therapeutics with significant upfront capital, potentially strengthening its financial position and allowing for continued investment in its pipeline.

Risk Assessment

Risk Level: medium — The transaction's success depends on closing in Q2 2024 and the realization of future milestone payments, which are not guaranteed.

Key Numbers

  • $100.0M — Upfront Payment (Received by ADC Therapeutics for Zynlonta royalty rights.)
  • $200.0M — Potential Milestone Payments (Additional payments ADC Therapeutics may receive.)

Key Players & Entities

  • ADC Therapeutics SA (company) — Seller of royalty rights
  • Zynlonta (drug) — Royalty rights being sold
  • Lyell Immunoscience (company) — Buyer of royalty rights
  • $100 million (dollar_amount) — Upfront payment for royalty rights
  • $200 million (dollar_amount) — Potential milestone payments
  • April 9, 2024 (date) — Date of the definitive agreement announcement
  • second quarter of 2024 (date) — Expected closing period for the transaction

FAQ

What specific royalty rights are being sold?

The filing indicates the sale of royalty rights related to Zynlonta.

Who is the buyer of the royalty rights?

The buyer is an affiliate of Lyell Immunoscience.

When is the transaction expected to close?

The transaction is expected to close in the second quarter of 2024.

What is the total potential value of the deal for ADC Therapeutics?

The deal includes an upfront payment of $100 million and up to an additional $200 million in potential milestone payments.

What is the purpose of this transaction for ADC Therapeutics?

The transaction provides ADC Therapeutics with upfront capital, likely to support its operations and pipeline development.

Filing Stats: 565 words · 2 min read · ~2 pages · Grade level 10 · Accepted 2024-04-09 16:06:28

Filing Documents

01. Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure. On April 9, 2024, ADC Therapeutics SA (the "Company") made available a presentation expected to be used in connection with the Company's virtual research investor event on April 9, 2024 from 4:00 to 5:30 p.m. EDT. A copy of the presentation is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein. The event will feature presentations from Ameet Mallik, Chief Executive Officer, and Patrick van Berkel, PhD, Chief Scientific Officer, highlighting recent updates and the Company's novel exatecan-based antibody drug conjugate platform. A live question and answer session will follow the presentations. The information contained in this Item 7.01 and Exhibit 99.1 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 99.1 Presentation dated April 9, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ADC Therapeutics SA Date: April 9, 2024 By: /s/ Peter J. Graham Name: Peter J. Graham Title: Chief Legal Officer

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