ADC Therapeutics (NYSE:ADCT) held its first-quarter earnings conference call on Monday. Below is the complete transcript from the call.
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Summary
ADC Therapeutics SA reported first quarter 2026 net product revenues of $20 million, reflecting a 15% increase from the previous year, primarily due to quarter-to-quarter variability in customer ordering.
The company is focused on advancing its strategic initiatives, particularly around its drug Zenlonta, with multiple clinical trials expected to yield data within 2026 and 2027, potentially expanding its market reach into earlier lines of therapy.
ADC Therapeutics SA reduced operating expenses by 13% compared to Q1 2025, maintaining a healthy cash balance of $231 million, which supports a cash runway into 2028.
The company anticipates significant revenue growth starting in 2027, contingent upon positive clinical trial outcomes and subsequent regulatory approvals and compendium listings.
Management expressed confidence in Zenlonta’s potential to reach peak annual revenues of $600 million to $1 billion in the US, assuming successful trial outcomes and regulatory milestones.
Full Transcript
OPERATOR
Good morning ladies and gentlemen and welcome to The ADC Therapeutics Q1 2026 earnings conference call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, May 4, 2026. I would now like to turn the conference over to Nicole Riley, Head of Investor Relations and Corporate Communications. Please go ahead.
Nicole Riley (Head of Investor Relations and Corporate Communications)
Thank you operator. Today we issued a press Release announcing our first quarter of 2026 financial results and business updates. This release and the slides we will use in today’s presentation are available on the Investors section of the ADC Therapeutics website. I’m joined on today’s call by our Chief Executive Officer Amit Malik. who will discuss our operational performance and recent business highlights, followed by our Chief Financial Officer Pepe Carmona. who will review our first quarter of 2026 financial results. We will then open the call to questions. Before we begin, I would like to remind listeners that some of the statements made during this conference call will contain forward looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements are subject to certain known and unknown risks and uncertainties and actual results, performance and achievements could differ materially. They are identified and described in the accompanying slide presentation and in the Company’s filings with the SEC, including Form 10-K, 10-Q, and 8-K. ADC Therapeutics is providing this information as of today’s date and does not undertake any obligation to update any forward looking statements contained in this conference call as a result of new information, future events or circumstances. Except as required by law, the Company cautions investors not to place undue reliance on these forward looking statements. Today’s presentation also includes non-GAAP financial reporting. These non-GAAP measures should be considered in addition to and not in isolation or as a substitute for the information prepared in accordance with GAAP. You should refer to the company’s first quarter of 2026 earnings release for information and reconciliation of historical non-GAAP measures to the comparable GAAP financial measures. I will now turn the call over to our CEO Amit Malik..
Amit Malik (Chief Executive Officer)
Amit thank you Nicole. We continue to make good Progress in the first quarter of 2026 as we advance towards multiple important milestones for Zinlanta over the remainder of the year, beginning with the expected Lotus 5 top line readout in the second quarter. From a commercial perspective, we continue to focus on execution and delivering on our commercial strategy maintaining Zinlanta as a differentiated treatment option for third line plus DLBCL patients. First quarter net product revenues were $20.0 million as compared to the prior year’s first quarter net product revenues of $17.4 million. The increase was driven primarily by normal quarter to quarter variability in customer ordering, with underlying demand broadly stable. Looking toward the second line plus setting where we believe the largest growth opportunity lies for Lotus 5, our phase 3 confirmatory trial of Zinlanta plus Rituximab, we expect to share top line data before the end of June, potentially bringing us another step closer to providing this combination to significantly more patients. While this timeline is rapidly approaching, I do want to highlight that we are currently still blinded to the Data. Turning to Lotus 7, we expect to complete enrollment of approximately 100 patients at the selected dose level of Zinlanta plus Clocitumab in the second quarter with full data anticipated by year end in indolent lymphomas. We continue to anticipate data publication between the end of 2026 and mid-2027 from the multicenter investigator initiated trials of Zinlanta in combination with rituximab to treat relapsed or refractory follicular lymphoma and of Zinlanta as a monotherapy to treat relapsed or refractory marginal zone lymphoma, we continue to pay close attention in the quarter to managing our cost base and optimizing our balance sheet on a non GAAP basis. We reduced our total operating expenses by 13% versus Q1 2025 and we ended the first quarter of 2026 with a healthy cash balance of $231 million. This maintains our expected cash Runway at least into 2028, enabling us to deliver against our strategy. We are building off the well established role of Zinlanta as a single agent therapy in third line plus dlbcl.
Amit Malik (Chief Executive Officer)
Whereas Inlanta has a profile of rapid, deep and durable efficacy as well as manageable safety with simple and convenient administration, we believe the relative stability we’ve seen in net product revenues over multiple quarters demonstrates that Xenlanta has a clear place in this market. This is just a starting point as we believe in the potential for Xenlanta to reach significantly more patients by expanding use into earlier lines of therapy in DLBCL and into indolent lymphomas. The data we’ve seen across these settings so far have been consistently encouraging with the potential to be highly differentiating through expansion into these settings in DLBCL and into indolent lymphomas. We are confident that Zinlanta has the potential to reach peak annual revenues of $600 million to $1 billion in the US assuming both compendia listing and regulatory approval. The upcoming Lotus 5 trial readout, if positive, will begin to unlock the value of our life cycle management efforts within the company.
Amit Malik (Chief Executive Officer)
Taken together with the upcoming data expected …
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