ADC Therapeutics Sells Zynlonta Royalty Rights for $100M

TL;DR

ADC Therapeutics sold Zynlonta royalties for $100M upfront, Q1 revenue $17.5M.

AI Summary

ADC Therapeutics SA announced on June 13, 2024, that it has entered into a definitive agreement to sell its royalty rights for Zynlonta to an affiliate of Montagu for an upfront payment of $100 million. The company also reported preliminary unaudited revenue of $17.5 million for the first quarter of 2024. This transaction is expected to close in the third quarter of 2024.

Why It Matters

This sale provides ADC Therapeutics with significant upfront capital, potentially strengthening its financial position and allowing it to focus on its pipeline development.

Risk Assessment

Risk Level: medium — The company is selling a revenue-generating asset, which could impact future cash flows, and the deal's success depends on closing in Q3 2024.

Key Numbers

• $100.0M — Upfront Payment (Received from Montagu for Zynlonta royalty rights.)
• $17.5M — Q1 2024 Revenue (Preliminary unaudited revenue for the first quarter.)

Key Players & Entities

• ADC Therapeutics SA (company) — Reporting company
• Zynlonta (drug) — Product whose royalty rights are being sold
• Montagu (company) — Buyer of royalty rights
• $100 million (dollar_amount) — Upfront payment for royalty rights
• June 13, 2024 (date) — Date of definitive agreement
• $17.5 million (dollar_amount) — Preliminary Q1 2024 revenue
• third quarter of 2024 (date) — Expected closing period for the transaction

FAQ

Key Financial Figures

• $2,000,000 — neral meeting of shareholders be set at $2,000,000 (Proposal #9a), (ii) the maximum aggreg
• $3,000,000 — year ending December 31, 2025 be set at $3,000,000 (Proposal #9b) and (iii) the maximum ag
• $10,000,000 — year ending December 31, 2024 be set at $10,000,000 (Proposal #9c). The voting results were

Filing Documents

• dp212847_8k.htm (8-K) — 65KB
• dp212847_ex0301.htm (EX-3.1) — 333KB
• 0000950103-24-008385.txt ( ) — 623KB
• adct-20240613.xsd (EX-101.SCH) — 3KB
• adct-20240613_lab.xml (EX-101.LAB) — 33KB
• adct-20240613_pre.xml (EX-101.PRE) — 22KB
• dp212847_8k_htm.xml (XML) — 4KB

07. Submission of Matters to a Vote of Security Holders

Item 5.07. Submission of Matters to a Vote of Security Holders. ADC Therapeutics SA (the "Company") held its 2024 annual general meeting of shareholders (the "Annual Meeting") on June 13, 2024. The Company previously filed with the Securities and Exchange Commission a definitive proxy statement and related materials pertaining to the Annual Meeting, which describe in detail each proposal submitted to shareholders at the Annual Meeting. All proposals submitted to the shareholders at the Annual Meeting were approved. The final results for the votes regarding each proposal are set forth below. Proposal #1 : Approving the management report, annual financial The shareholders approved the management report, the annual financial for the year ended December 31, 2023. The voting results were as follows: FOR AGAINST ABSTAIN BROKER NON-VOTES 25,259,443 99,541 30,751 — Proposal #2 : Approving, on an advisory basis under Swiss law, the compensation report The shareholders approved, in a non-binding advisory vote, the compensation report for the year ended December 31, 2023. The voting results were as follows: FOR AGAINST ABSTAIN BROKER NON-VOTES 23,542,524 1,311,228 222,031 313,952 Proposal #3 : Discharging the members of the board of directors and the executive committee from liability The shareholders approved that the members of the board of directors and the executive committee be discharged from liability for the year ended December 31, 2023. The voting results were as follows: FOR AGAINST ABSTAIN BROKER NON-VOTES 23,609,354 274,540 224,244 313,952 Proposal #4 : Approving the appropriation of the financial results The shareholders approved that the net loss for the year ended December 31, 2023 be carried forward. The voting results were as follows: FOR AGAINS

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 3.1 Articles of Association of ADC Therapeutics SA 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: June 14, 2024 By: /s/ Peter J. Graham Name: Peter J. Graham Title: Chief Legal Officer

View Full Filing

View this 8-K filing on SEC EDGAR