LAUSANNE, Switzerland - ADC Therapeutics SA (NYSE: ADCT) reported a narrower-than-expected loss for the first quarter of 2024, sending shares soaring 26.3% as the market responded positively to the earnings beat. The biotechnology firm announced an adjusted net loss of $0.38 per share, which was $0.17 better than the analyst consensus of a $0.55 loss per share. However, revenue for the quarter was slightly below expectations at $17.8 million compared to the analyst estimate of $17.87 million.
The company's flagship product, ZYNLONTA® (loncastuximab tesirine-lpyl), generated net sales of $17.8 million for the quarter, marking a 7% increase from the previous quarter but a 6% decrease from the first quarter of the previous year. The year-over-year decline in net sales was attributed to higher gross-to-net deductions and lower volume, which were partially offset by a higher price. Despite this, the company has seen sequential growth in sales volume across both community and academic settings.
ADC Therapeutics also reported a reduction in total operating expenses, which decreased by 25% year-over-year, with adjusted total operating expenses down by 16%. This decrease was primarily due to less investment in certain programs and a strategic focus on prioritized development initiatives.
Ameet Mallik, Chief Executive Officer of ADC Therapeutics, expressed satisfaction with the company's progress, highlighting the successful dose escalation of the LOTIS-7 study and encouraging initial Phase 2 data for ZYNLONTA® in the treatment of marginal zone lymphoma (MZL). "With multiple potential value-generating catalysts ahead this year, I am excited about our prospects for continued progress in 2024," Mallik stated.
The company's cash and cash equivalents stood at $234.3 million as of March 31, 2024, with expectations that its cash runway will extend into the fourth quarter of 2025. The positive financial results and the strong cash position underscore the company's strategic focus and operational efficiency.
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