ADC Therapeutics SA (ADCT) has announced a $100 million private investment in public equity - PIPE financing through agreements with institutional investors.
The company will sell 13 million common shares at $3.53 each and issue pre-funded warrants for 15.7 million shares at $3.43 per warrant. The PIPE is expected to close on June 16, 2025, with proceeds intended for the continued development and commercialization of ZYNLONTA, as well as general corporate purposes.
To streamline operations, ADC will discontinue most of its early-stage solid tumor programs, close its UK facility, and reduce its global workforce by about 30%, a move estimated to cost $6-7 million in restructuring charges. These changes aim to extend the company's cash runway into 2028.
Key development milestones are anticipated for ZYNLONTA's Phase 1b LOTIS-7 and Phase 3 LOTIS-5 trials, targeting diffuse large B-cell lymphoma (DLBCL), as well as the advancement of a PSMA-targeting ADC for prostate cancer. The company also aims to complete IND-enabling activities for its PSMA program by year-end.
The PIPE was led by Redmile Group, with Jefferies, Guggenheim Securities, Cantor, and RBC Capital Markets acting as placement agents. Legal counsel was provided by Davis Polk & Wardwell LLP and Homburger AG.
ZYNLONTA, a CD19-directed ADC, is approved in the U.S. and EU for treating adult patients with relapsed or refractory large B-cell lymphoma following two or more prior therapies. It continues to be evaluated in combination studies for earlier lines of therapy and other B-cell malignancies.
Thursday, ADCT closed at $3.67, up 3.97%, and traded after hours to close at $3.68, gaining an additional 0.27% on the NYSE.
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