ADC Therapeutics Extends Runway, Focuses on ZYNLONTA Expansion Amid Strategic Shift

LAUSANNE, Switzerland – ADC Therapeutics, a biopharmaceutical company specializing in Antibody Drug Conjugates (ADCs), announced its Q3 2025 financial results, revealing a strategic refocus on commercializing its lead product, ZYNLONTA (loncastuximab tesirine-lpyl), and extending its cash runway through a recent $60 million financing. While recent revenue has declined, the company remains optimistic about its long-term prospects, driven by promising clinical data and a streamlined focus on maximizing the potential of ZYNLONTA.

Financial Overview & Strategic Pivot

ADC Therapeutics reported a net product revenue of $15.8 million for Q3 2025, a decrease from $18.0 million in Q3 2024 and $18.1 million in Q2 2025. Total revenue reached $16.43 million, marking an 11.0% decline year-over-year. However, the company successfully reduced non-GAAP operating expenses to $45 million, a 12.1% decrease, driven by a reduction in R&D spending related to discontinued programs. This resulted in a narrowed net loss of $41 million, or $0.30 per share, compared to a $44 million loss, or $0.42 per share, in the prior-year quarter.

As of September 30, 2025, ADC Therapeutics held $234.7 million in cash and cash equivalents. The completion of a $60 million PIPE financing in October 2025, significantly bolstered the company's financial position, extending its expected cash runway to at least 2028 – surpassing initial estimates of a runway into 2026.

“The financing represents a strong vote of confidence in our strategy and our team,” said a company spokesperson. “It provides us with the resources to accelerate the commercial expansion of ZYNLONTA and advance our clinical programs.”

The company's strategic shift comes as it seeks to establish ZYNLONTA as a leading therapy for relapsed or refractory diffuse large B-cell lymphoma (DLBCL) and explore its potential in other hematological malignancies.

Focus on ZYNLONTA’s Commercial Potential

ZYNLONTA has received accelerated approval from the FDA and conditional approval from the European Commission for the treatment of relapsed or refractory DLBCL after two or more lines of systemic therapy. ADC Therapeutics is now focused on expanding ZYNLONTA’s reach into earlier lines of therapy and exploring combinations with other treatments.

Key clinical trials driving this expansion include:

• LOTIS-7 (ZYNLONTA + glofitamab): Interim data is expected by year-end 2025, with an observed overall response rate (ORR) of 93.3% and a complete response (CR) rate of 86.7% in 30 efficacy-evaluable patients with relapsed/refractured DLBCL. Full results are anticipated in H1 2027.
• LOTIS-5 (ZYNLONTA + rituximab): Topline results from this Phase 3 trial in second-line plus DLBCL are expected in the first half of 2026, potentially leading to a supplemental Biologics License Application (sBLA) in H1 2027.
• Investigator-Initiated Trial (IIT) in Follicular Lymphoma: Updated data has shown an ORR of 98.2% and a CR rate of 83.6% across 55 evaluable patients, with a 12-month PFS of 93.9% after a median follow-up of 28 months.

“The compelling clinical data we are seeing with ZYNLONTA, particularly in combination with other agents, supports our belief in its potential to become a cornerstone therapy for DLBCL and other hematological malignancies,” explained a clinical advisor. “The focus on expanding its use into earlier lines of therapy and exploring new combinations is a logical and promising strategy.”

Streamlining Pipeline and Prioritizing Resources
The company’s recent financial results reflect a streamlining of its pipeline, with a reduction in R&D expenses related to programs that were deemed less promising. “We made the difficult decision to discontinue certain programs to focus our resources on the most promising opportunities,” a company spokesperson stated. “This allows us to maximize our potential for success and deliver value to our shareholders.”

While the company initially highlighted ADCT-602 and ADCT-901 as key pipeline assets, recent reports and presentations have predominantly focused on ZYNLONTA and its expansion opportunities. Analysts speculate this indicates a strategic shift, prioritizing the commercialization of its lead asset over earlier-stage development programs.

“It’s not uncommon for biotech companies to reassess their pipeline and focus on the programs with the highest probability of success,” noted an industry analyst. “Given the promising clinical data and commercial potential of ZYNLONTA, it makes sense for ADC Therapeutics to prioritize its resources on this asset.”

Challenges and Outlook

Despite the positive developments, ADC Therapeutics faces ongoing challenges, including competition from other ADC therapies and the need to secure reimbursement for ZYNLONTA in key markets. The company’s revenue decline in Q3 2025 also highlights the importance of driving commercial adoption and expanding market share.

“The ADC space is becoming increasingly competitive, and ADC Therapeutics will need to demonstrate the value of ZYNLONTA to differentiate it from other therapies,” stated a market access expert. “Securing favorable reimbursement and demonstrating cost-effectiveness will be crucial for driving long-term commercial success.”

Despite these challenges, ADC Therapeutics remains optimistic about its long-term prospects. The company’s strengthened financial position, promising clinical data, and streamlined focus on ZYNLONTA position it for potential growth in the years ahead. The company's emphasis on maximizing the potential of ZYNLONTA, coupled with the extended runway, indicates a commitment to delivering value to patients and shareholders. “We are confident that ZYNLONTA has the potential to become a leading therapy for DLBCL and other hematological malignancies,” concluded a company spokesperson. “We are committed to executing on our strategic plan and delivering long-term value to our stakeholders.”