ADC Therapeutics Reports 27.6% Revenue Growth in Q1 2025, Net Loss Decreases

ADC Therapeutics SA reported its financial results for the first quarter of 2025, revealing total revenues of $23.0 million, a 27.6% increase from $18.1 million in the same period of 2024. This growth was primarily driven by a significant rise in license revenues and royalties, which surged to $5.6 million from just $0.2 million a year earlier, attributed to a milestone payment related to the conditional approval of its flagship product, ZYNLONTA, by Health Canada. However, product revenues from ZYNLONTA decreased slightly to $17.4 million, down 2.5% from $17.8 million in the prior year, reflecting lower sales volume despite a favorable pricing environment.

The company’s operating expenses remained relatively stable, totaling $51.5 million, a slight decrease from $51.7 million in the previous year. Notably, costs associated with product sales decreased by 17.9% to $2.1 million, largely due to the absence of a significant batch cancellation fee incurred in the prior year. Research and development expenses increased by 12.4% to $28.9 million, driven by investments in next-generation investigational antibody-drug conjugates (ADCs). The overall loss from operations improved to $28.5 million, down from $33.6 million in the first quarter of 2024.

ADC Therapeutics reported a net loss of $38.6 million for the quarter, compared to a net loss of $46.6 million in the same period last year, resulting in a loss per share of $0.36, an improvement from $0.56 per share in 2024. The company’s cash and cash equivalents stood at $194.7 million as of March 31, 2025, down from $250.9 million at the end of 2024, reflecting increased cash used in operating activities, which totaled $56.3 million for the quarter, up from $44.1 million a year earlier.

In terms of strategic developments, ADC Therapeutics continues to focus on expanding the market for ZYNLONTA, which has received multiple regulatory approvals across various regions. The company is also pursuing early-stage research programs targeting solid tumors and is exploring potential collaborations to enhance its research pipeline. The company has made the decision to discontinue the ADCT-602 clinical trial, reallocating resources to more promising projects.

Looking ahead, ADC Therapeutics remains optimistic about its growth trajectory, emphasizing its commitment to advancing its ADC technology platform and expanding ZYNLONTA's indications. The company plans to leverage its existing cash reserves, revenue from ZYNLONTA, and potential collaborations to fund its operations and research initiatives over the next twelve months. However, it acknowledges the need for additional capital to support its long-term business strategy, which may include equity financing and strategic partnerships.