ADC Therapeutics S.A. (ADCT) Earnings

Management highlights

- Advancing towards multiple milestones for Zalanta, including expected Lotus 5 topline readout in second quarter. - Focus on execution and delivering commercial strategy for Zinlanta as differentiated treatment for third-line plus DLBCL patients. - Expect to complete enrollment of approximately 100 patients in Lotus 7 in second quarter with full data anticipated by year end. - Anticipate data publication between end of 2026 and mid-2027 from multicenter investigator-initiated trials of Xenlanta in indolent lymphomas. - Managing cost base and optimizing balance sheet, with non-GAAP total operating expenses reduced by 13% versus Q1 2025, ending first quarter 2026 with $231 million cash balance.

Guidance

- Expect to share top-line data for Lotus 5 before end of June, potentially submit supplemental biologic license application to FDA by year end if results positive. - On track to complete enrollment in Lotus 7 in second quarter, plan to share next update with full data at medical meeting by end of 2026. - Expect lead investigator to share additional data from indolent lymphomas studies at medical conferences between end of 2026 and mid-2027, assess regulatory and compendia strategies once sufficient data available.

Segment performance

First quarter net product revenues were $20.0 million compared to prior year's first quarter net product revenues of $17.4 million. Increase driven by normal quarter-to-quarter variability in customer ordering with underlying demand broadly stable. On non-GAAP basis, total operating expenses reduced by 13% versus Q1 2025, ended first quarter of 2026 with $231 million cash balance.

Analyst Q&A

• Q: Good morning. Congrats on the progress and thanks for taking my question. You mentioned on the call that you remain blinded to the data. Can you clarify if the database is locked at this point and when you reach the 262 events? And from a process standpoint, can you say what's happening currently and what are the drivers that will allow you to unblind the data?

  A: Yeah, thanks for the question. So what I can tell you is we're on track to be able to read the data. So the We're completely blinded to the data, so I don't know any information yet. But as soon as the database gets locked and we do the statistical analysis, we'll then be able to disclose top-line data. So we're not at that point yet. Got it. So we are on track to basically share the data this quarter. Got it. Okay. And for when you reach the 262 events, is there anything more on that you're saying? from a timing perspective? A: Yeah, we're not, we're not commenting on exactly, you know, what we're hitting the events, but what I can tell you is we're on track to hit the, you know, to basically to get to the top line results this quarter. Okay. Okay. Understood. Maybe one other quick question. Just, Following the site-level interventions you implemented to address the early dropout in censoring, do you have any perspective potentially from the IDMC to provide any indication that censoring rates improved after those changes? I guess any more color on that could be helpful. A: I can't comment further. What I can tell you is the last IDMC look, which was from a safety standpoint, was last fall. And again, the recommendation was to proceed as is. There's been any other looks from the IDMC at the data. Understood. Okay. Thanks for taking my questions. A: Yeah. Thank you so much. Appreciate it.

• Q: Oh, hey, guys. Good morning. Thanks for taking my questions. I have a couple. Maybe first commercially. The 20 million in one queue, it's about 15% growth annually. I know you mentioned ordering pattern, but it just seems more growth than we've seen in recent quarters, and just curious if there's anything else going on in terms of driving more volume, perhaps in the approved indication in the market. And then the other question I just had on Lotus 5, so great to hear that the data's still on track for this quarter. Could you just comment on how much of the result you'll be able to disclose in a top-line announcement? Will you be able to share things like median PFS or perhaps hazard ratios, et cetera, in the top-line release?

  A: Yeah, thanks, Michael. So first in sales, as you recall, Q3 was quite low and the Q4 was quite strong. So we have $15.8 million and then $22.3 million Now we're at $20 million. I think it's too soon to call a change in trend, to be honest, right now. But I think what we're seeing is definitely very good execution. We're happy that we've been able to maintain our share despite a very competitive environment. And there is quarter-to-quarter variability. As we saw, Q3 was one of the lowest quarters, and then Q4 was one of the higher quarters in the last couple of years. I think after two quarters in that $20-plus million range, it's encouraging, but too soon to call a trend. So I think if this continues, that may cause us to sort of change where we think the range is going to be. But I think at this point, just given the variability we've seen in the last couple of years, I think we think we're still in the range of normal demand within the patterns of customer order and variability. With regards to Lotus 5, Yeah, we plan to share all the relevant information on the primary endpoints. Of course, it can be the PFS, hazard ratio, any information that we have on key secondary endpoints, as well as top line safety data. So, we do want to make sure that the disclosure is clear with the information that we have and well understood what the result is. At the same time, you know, a lot of sub-analyses and other things that are typically less relevant for a top on result, but critical for, let's say, a medical conference or publication, those would be details that would come later in the year. Thank you. Yeah, thanks, Michael.

• Q: Thanks for a very efficient call. A couple of questions for me also on Lotus 5. First, with regard to procedures, do I take Pepe's comments to mean that you're now entering the quiet period? Is that starting after today?

  A: We started actually a quiet period. We have to do earnings, of course, but we haven't been engaging with investors since April 1. So for the whole quarter until we disclose the data. Thank you. And then, Amit, on the information that you'll be able to disclose with regard to the top-line data for LOTUS 5 this quarter, will we get some thoughts on how survival is trending? I know the trial's primary endpoint is PFS, and you're well-powered there, but wondering if you'll be able to provide color on OS trends, and then if you know at this point how many OS events or how mature the OS data might be at the time of the PFS top-line look. A: Yeah, so in addition to TFS, which obviously will be mature, we will give the information that we have on overall survival. So whether it's mature or it's a trend, we will provide the information that we have on overall survival, as well as the other key secondary endpoints as well, like response rate, duration of response. So we plan to share all the information we have. I can't comment right now on how many events we have with regards to overall survival, but what I can tell you is it will be, with whatever information we have, we will make it part of the disclosure. And then maybe just one modeling that for Pepe, the change that we saw from personnel from R&D into cost of goods, is that an ongoing transition? Are we expecting COGS to be inflated in subsequent quarters as well? A: It is going to continue throughout all courses from now on. So it's a reallocation of those expenses into cost of goods, and we capitalize one-time inventory, but the cost of goods are going to increase because of this fixed cost that now is getting allocated. Thank you very much.

• Q: Hi, good morning. I appreciate you taking the question. My first one, I wanted to ask, you know, what you believe the immediate impact post the Lotus 5 top line results in the second quarter, you know, could be, you know, for instance, if it is positive, the PFS readout, you know, how this may change, how Zinlanta is prescribed, reviewed, in the second half of this year, even prior to Compendia listing. And then secondly, just wanted to ask, even push over to the IITs, how does that add some incremental value over the next year or two?

  A: Sure, yeah. So once we get to the top line readout, assuming it's positive, we then would work to kind of go down two paths. One is to prepare the SBLA submission that typically takes four to five months. We expect to have that certainly before the end of this year. And then that could lead to our approval thereafter next year. And then in addition, we plan to submit to a medical congress and publication by the end of this year to be able to share the full details of the result. That would be the basis that we would submit to Compendia. So we expect that we could get Compendia inclusion sometime in the first part of next year. and then an approval sometime thereafter in 2027. So we don't expect any revenue impact this year. We expect this year to be largely in line with what the previous years are and only see a revenue trajectory increase next year. As you know, we'll only start promoting the product once we have formal approval sometime around the middle of next year. And your second question was around the IITs, correct? A: Yeah, yeah. Okay, so with the IITs, we have both marginal zone and the follicular lymphoma IITs. Both of those, let's call it, the data on the full study will be disclosed sometime between the end of this year and the middle of next year. We expect publications to happen around that same time and then to be submitted for companion inclusion after that. In addition, we're evaluating the regulatory approach for that we would take an input from as we move forward in parallel. Great. I appreciate the details and looking forward to the . A: Yeah. Thank you.