ADCT - Earnings call transcript Q2 2024

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Operator

Welcome to the ADC Therapeutics Second Quarter 2024 Financial Results Conference Call. My name is Didi, and I will be your operator for today's call. [Operator Instructions]

I will now turn the call over to [ Marcy Graham ], Investor Relations Officer for ADCT. Marcy, you may begin.

Unknown Executive

operator. you, Thank issued XXXX we release our announcing This results a and quarter financial business second morning, press update. ADC Investors This release presentation of the today's use will the section and the are slides available we Therapeutics website. in on joined Officer; Ameet Executive Carmona. Mallik; our Pepe and CFO, today's by our I'm on Chief call and

highlights recent We our quarter will business discuss XXXX second review and financial results.

the We questions. will call then for open

forward-looking subject Slide the some I SEC, conference results, described the identified Private X-K. of of like to of listeners uncertainties, with within and and achievements contain the call are statements made X begin, to provisions company's and the filings XX-K, would These Form They we XXXX. and risks accompanying presentation of that are Before Securities meaning this statements and performance in during certain will harbor Act in the statements on the actual remind forward-looking could Litigation safe and Reform XX-Q known U.S. unknown including and differ materially. the

information, except this is law. not call to obligation events company and date not does statements Therapeutics of place of today's to circumstances, by reliance cautions information any ADC any result new a forward-looking undue in or statements. this undertake forward-looking as as contained conference these required update as investors future The providing on

reporting. financial with isolation be should accordance measures includes considered to non-GAAP prepared also substitute a or in These for and addition presentation not non-GAAP the Today's GAAP. in in information

the reconciliation comparable company's earnings measures. and for measures quarter release to second historical You to financial of the should refer information GAAP non-GAAP

Ameet? to over call the CEO, our turn now Ameet will Mallik. I

Ameet Mallik

unlock to everyone strategy I'd joining about us. and we the Marcy, all to thank value by reminding Thanks, tremendous in like see start company. our Today, you the for

hematology product this, the is portfolio. within Our have our asset derisked ZYNLONTA, in focus -- we key in a and prioritized primary first pillar

the third-line-plus our we DLBCL DLBCL We and efforts opportunities in earlier existing lines our of to in pursue indication substantially continue to larger lay while therapy commercialization lymphomas. the potential indolent foundation

our pipeline. is in of asset. AXL pillar tumor grounded second is emerging solid our targeting The strategy our most advanced ADCT-XXX,

are portfolio broad against of of second plan our to our based this, of novel platform. Beyond XXXX, differentiated advancing solid a the In our strategy. focus commercial exatecan tumor by expansion driven we programs working quarter our we in ADCs execution, interest on ZYNLONTA several on continued deliver on while targets fronts advancing

we year-to-date. achieved In $XX.X the with million commercial revenues XXXX, first half of of profitability

million the revenues same Our XXXX. and in second million $XX.X XXXX $XX quarter million of first to during quarter of $XX.X of the revenues compared in period

Even a in market, plus we've so now place self-funding continued and to observed be have quarter-to-quarter as patients a DLBCL. forward. treatment our space third-line in the the expected business bispecifics. with option competition it's going time, plus we highly secure said, That with seen We've able been variability to over for third-line commercial and competitive is

and its as ease the the a we plays are to competitive. the in rapid in and market, profile Within safety increasingly responses, indication, complete monotherapy current strengthen ZYNLONTA We the durable with today of presence our see clinical third-line role the plus given even DLBCL environment as manageable further in administration. our grows confident potential

the DLBCL potential indication the of are to lymphomas, lines beyond in earlier We and commercial excited about opportunity. ZYNLONTA our expanding current into grow significantly

is In second and end X likely nearing expected all of the enrollment trial, in our line of patients by anticipated expected plus combination enrollment by XXXX An in with the -plus XXXX study week, our year-end. evaluable data ZYNLONTA by patients past efficacy safety in [ complete are of arm XXXX. of efforts. is III expansion and of half enrollment and LOTIS-X the expected second the by completion part glofitamab combination end XXXX. LOTIS-X, first ZYNLONTA enrollment and with Phase of on end is Last on update luprituximab and futility expansion line the dose full track with plus our We of on in progressing remains ], confirmatory DLBCL in data the in

platform, the the optimize base novel XXXX. are from on and and early our We second tumor tumor lead lung cancer and update We pancreatic programs. ADCT-XXX, plan update solid patients of our April, progressing solid in also initial to including as scheduling novel targeting and sharing non-small cancer half Phase preclinical comprehensive an trial screening a cell exatecan And begun enroll since to data have X share our our I ADC, in continues candidates. on axle sarcoma dose ADC patients. we the

X move disclose which have to forward, to candidate selected opportunities. we We and to continue partnership explore XXXX in expect potential

basis. with strategy we expenses on quarter, XX% of This, recent financing to to the addition our second Throughout our enabled company to expected into a in by operating us decreased against and providing $XXX maintained stronger cash balance non-GAAP sheet mid-XXXX, extend and year-over-year capital disciplined in million, allocation quarter the our strategy. our a the runway execute

in now profitability for therapy and ZYNLONTA the earlier lymphomas. lines reached commercial in on deeper have XXXX, larger opportunity substantially to potential go we indolent of for I'd As like ZYNLONTA DLBCL

usage DLBCL. and ZYNLONTA LOTIS-X are focused into trials expanding on of second-line LOTIS-X plus Our

strategy on choice reach in to these million in confident become than more based setting to the X agent this studies, in results our potential sales. peak we $XXX combination are the with positive of Assuming

reviewed and and safety continues without the data trial announce modification. a community pleased recommended The trial to and to has are positive we interim and to the continue efficacy data LOTIS-X Our unblinded on independent outcome analysis. the advance, monitor futility

by potential we readout the passed XXXX. on track to of this with futility, end headline enrollment end have complete we remain the As by a now the of year for

potential the potential the label. by plus doubling triple and into in the in patient If lead This believe ZYNLONTA as used opportunity increasing our to revenue approval frequently DLBCL roughly XX% population by line treatment XXXX. positive, with expand trial treatment duration will a current as community second early the of rituximab, the we the full for could and potentially to this combination end And setting. ZYNLONTA indication compared

In the by activity trial our the enrollment encouraged in dose we tolerability plus investigator as before the X of expansion to and and antitumor to initial glofitamab at dose in plan year-end. patients we escalation. additional majority profile efficacy continue observed in ZYNLONTA and bispecifics, expect DLBCL safety initial safety the second Enrollment with ZYNLONTA to assessment combining as Part LOTIS-X of well part plus X ongoing data is complete the be share line with among and

to that this combination setting. reduce and associated bispecifics, can the potential hospitalization opportunity in We versus either community improve ZYNLONTA with the efficacy expanding by the demonstrate are accessibility excited for agent need thereby

deep follicular far potential believe on potential of to and duration side for we provide in zone the data Miami and the thus see trials lymphoma and to ZYNLONTA from exploring also Beyond the indolent lymphoma monotherapy University expand the effect studies, there profile. fixed these rates and with durable a the initial seen setting remission. into we is ZYNLONTA Based CR efficacy these rituximab of at in the second-line rapid, lymphomas years based lymphoma. therapy high of DLBCL, marginal potential from of marginal investigator-initiated studies data demonstrate patient manageable plus a on zone Early follicular in

lymphomas, forward discuss need As with sufficient there seek unmet across path as the plan regulatory well compendia. authorities indolent data these remains inclusion we to with in significant as

Phase in these We ADCT-XXX a will continue we on at targeting Within AXL investigate anticipate medical more meetings. shared future be I to X trials tumors, solid study.

pancreatic XXX While biomarker with others as therapeutic Axle have design, validated to PVD profile a multiple high is as innovative including been ] expression survival cancer selection approach it have patient and shown with AXL types, types, toxin many our tumor lung expressed we target, of correlated potentially cancer. the explored incorporating in to due cancer, and differentiated has across cell a lower as [ AXL non-small assay. our is sarcoma, well overall its a that

patients sarcoma to cancer continue prostate, non-small trial, cell and respect on endometrial the patients. to preclinical we have enroll and dose advancing begun and lung candidates ovarian lung, optimize and colorectal, cell focus we our is our ADC against pancreatic in With cancer differentiated as cancers. this pipeline, screening In non-small schedule

of each survival indicates incidents opportunities options Furthermore, and needed. key that are in treatment the combination part of X-year the and offers better each tumor armamentarium. a remains large potential treatment type, For chemotherapy case,

From that one lead and Claudin-X, ADC PSMA move forward NaPiXb, we expect selected our which X have candidates, in ASCTX, XXXX. now IND, to disclose to we

studies, and Claudin-X year. stage, In to ADCs terms in IND-enabling our is our PSMA candidate selection NaPiXb, the ASCTX an complete this drug expect which ADC and we stage, are of

cancer offers index, improve exatecan-based work proprietary therapeutic patients seek reflecting to the as the And our portfolio our the utilizes candidates of to care each standard have that for each to each potential of platform. research X we high we ADC. design a advance collaborations a continue lead and Preclinical suggests the novel broad believe

unmet patients future. of significant early the a and coupled in with create the the for lives programs the need, Given our successful research opportunity, outcome to market potential medical transform value the has

I call over to With Pepe. like to would that, turn the

Jose Carmona

balance quarter Thank of Starting our through our sheet. with you you, Ameet. summary second I will results. a take brief now

approximately of As cash had cash we $XXX June million. equivalents of XX, and

Moving the to P&L.

deductions the decrease drug sales $XX.X months as a same to net As compared quarter million due due net is of offset million million for accrual, to you decrease to partially second price. were to primarily product ZYNLONTA and rebate the $XX.X primarily heard, a partially $XX.X The in period for as higher X discarded XXXX. lower well volumes year-to-date million quarter-over-quarter the first offset and revenues price. to for higher primarily due by $XX sales already by the The million is higher gross as volume, lower

basis, efficiencies, year. selling compensation, focus with to compared due on the and reduced non-GAAP on and in studies a focused driving marketing investment mainly clinical excludes on together of second our This down stock-based operating expenses XX% quarter to expenditures last R&D operating total efficiencies Our reflected expenses. which were our

approach a capital For XXXX, of to will allocation. the disciplined to continue our we take remainder very

reconciliation appendix release the issued of this of in non-GAAP GAAP in tables to measures earlier the financial file can compounding measures presentation. the You and of today the press

the loss and adjusted XXXX basic million P&L, The non-GAAP diluted loss or reported expenses. GAAP we our operating to the share. believe was on reported On diluted to and net continue the are corporate compared net $X.XX second basis, basic a strong due our to per to lower quarter we an loss net With million $X.XX Moving of for or primarily of per quarter well pursue with and adjusted financed bottom in a sheet, decrease adjusted the strategy. share. balance pulp $XX.X we of was loss basis, net of $XX.X a

create to value hematology And primary expanding current of within be reminder, our continues our a the objective to use the by allocation. beyond As capital indication. our this, is ZYNLONTA of key focus

We behind and commercialization supporting expansion and through indolent achieve ex our this of U.S. by directly lymphomas. and lines fully the potential expect into investing DLBCL early to by our efforts U.S. in partnership

tumors, novel exatecan-based multiple our pursue increase solid ADC on goal, aim research platform. our parallel shots In through is and our candidates mainly to in

In partner in the order IND, addition taking to basis, additional to the risk. on candidate a we financial or determine progress we to will we share wish and to to candidates case-by-case internally development are whether forward seek

sarcoma an half meetings for our milestones, shared completion Finally, and I initial read in will AXL safety we initial ADCT-XXX LOTIS-X, LOTIS-X medical pancreatic first in indolent mature include have multiple value-driving and trials XXXX. data or this data expected from expect cancer. that anticipate Part and of be catalyst in at both in data the to XXXX, LOTIS-X year. which and of AXL This enrollment second In would half XXXX in of we we like lymphoma efficacy and expect X highlight expansion of potential the

will the I to Ameet. back that, call With turn

Ameet Mallik

Thanks, Pepe.

quarter illustrated As the what's and in made progress today, about excited we ahead XXXX. half second significant of in second the we've are

coverage We our efficiencies have with Manta and operating support. maintaining profitability commercial while medical by achieved driving customer-facing

and key We disciplined maintained milestones continue and to be our capital research we our allocation. planned to approach of for development each on track

ADC value strategy, all our I drive creation a to Therapeutics ahead, confident sheet positioned for that stakeholders. strong with am balance execute is Looking our well to

With that, session? Q&A could operator, please you the begin

Operator

[Operator Eric Schmidt from Fitzgerald Instructions] is with Cantor online a question.

Eric Schmidt

study? for Could futility a Ameet, trial have interim be first will the there any Was on the analysis? other side a than other Maybe progress. or other statistical than consideration other outcome LOTIS-X look. any the there been, potential given on say, Congrats halting

Ameet Mallik

That Eric. Thanks, Yes. was question. great a

independent unblinded data committee without the and the efficacy monitoring any and safety data So to reviewed trial modifications. recommended the continue

as prespecified an in and what So PFS, per futility at, terms you efficacy based analysis endpoint, that with which, review. for on looked IDMC this know, pass is of efficacy primary they was boundaries interim the

population. expected data obviously AEs unblinded very, The were at treatment-emergent can looking as pretreated that noted imagine, this the safety was you as also vulnerable and directly IDC in and

And So recommendation just the confidence continue without us, the study. study to around our increases certainly, was any modifications. for

Eric Schmidt

not And you disclosed those assume? PFS what boundaries have are, I

Ameet Mallik

haven't we disclosed. Yes,

Eric Schmidt

of in little form or up. terms might for the second place, the got a Okay. medical what it And several take bit be of some year, upcoming then about specific which the might a half you've be Can corporate you meetings, which more lined be at of releases? events press milestones

Ameet Mallik

Yes.

likely patients as if past, a we're because the have them going probably XX at year. say the can would but year. I of the have least will available big The of Well, we've of by our been confirmed. be make end responses LOTIS-X, that want in disclosure in of cleaned XX available, that through to be is X look at be enroll end for any this have trial which So a any patients weeks disclosed simply data the will most to the corporate we'll specifically, the we it so would combination, ones, you at

get of as make We you sure data of late shown. once to we show kind much you going be possible. can get cutoff the to basically, August, to So that as at want what's

in cancer, of first We where the and have just Similar patients as to data that have. in a cancer lung trial sure expect year. cell from full of begun want patients non-small make that AXL, in well currently have to we in as next sarcoma doing can the dosing data pancreatic screening the number we're we we that with half share

for can like and as congresses August. already happened actually so you And others cutoffs ASH imagine, in have

be So company again a disclosure. that will

What will in be it's the I or are whether at disclosures. of say indolent medical year, this meetings. updates set is terms So probably year the next those next biggest X of lymphomas, would of

Operator

a Shi Kelly from online Jefferies with question. is

Dingding Shi

Congrats and terms on this distribution academic a release. and split also Is net? provide Could channel progress. ZYNLONTA, press variability of community of in pattern you the in Maybe terms for the gross on in maybe in inventory front. on to color prescription and variability commented you order and this also the more comments

Ameet Mallik

Okay.

to and And net in on I'll the the I'll talk turn comment Pepe gross So see to quarter. order, then variability evolved. about we that's that to it quarter how by the

variability, a lot if would mark I So at is you just quarter-by-quarter month. say look by

a you relatively institution. I'll So just iconic quantity you large give of of example because amount in a some example, real you examples. We we're may a rare order, order January, have give can significant imagine, a as for that they I'll but disease.

cycles our on of is X. average And the about number --

per So patient. you a of need vials don't lot

X and patients. So they X XX order And X, to months. may need next for for for XX order patients to the or not then X

pattern. to And accounts so with need smaller also order see that happens lot some where a

months can where the some months, cut past are we how quarters certain in And get and this affect are which seen So we've which off, And you lower. depending the much fluctuation. in up that on down see the since much launch performance. see higher

post and I bispecific say increasingly used in community bispecifics. in some you when more or in of for see a really, to competitive seeing we're understanding where counts. variability you've in still use that can't outstanding. In there's adoption think there's is a because What use community, very an I stability of much last, of especially academic strong large lot would clear the despite bispecifics how in settings. seen either a the be place We're environment, seeing ZYNLONTA And

accounts the they just variability yet with of course, of the couple when the patients an not have And patient comes bispecifics. adopted see see of patients, months. only a not may see or average But physician every majority community

So less. get and you more you in up accounts, can if patients if ZYNLONTA. quarter-to-quarter they or we quarter, see look month-to-month on what even any they're do for depending why typically variability. show suitable and That's at

Jose Carmona

just to even expect when favorable to the adjustment quarter. if one-off. gross we would saw at the or the the of this year-to-date gross prior In that be net side, From the a as should a QX, I go the year. for that's you expect we period balance look general, you

Dingding Shi

I follow-up solid also have program tumor XXX a And the AXL. regarding targeting

particular of going versus is year what sarcoma the enrollment? for be and sarcoma to end pancreatic relative also data proportion enrolled focus like sub So you're shown by be patients any cancer the like the and will to taps, of

Ameet Mallik

Yes.

So for focused mean, know, AXL terms soft be there's in I pace, to high as sarcoma, both actually, are enrolling we're expression. pretty enrollment, tissue of very honest. a sarcoma. on at good then you And

don't we even for select need So patients sarcoma. to

it's up lot saw, there's a late-line none get a to helps rare the the that of awareness although for and options community a signals setting. lot So you of within numbers. patients. And these select obviously the the early not we There's drive given when to

similarly So continued good enrollment we with pancreatic. and see

patients, to late patients prior the failed right, Again, be it therapies. line have And already that tend very for isn't great. these prognosis multiple

we're those think don't. AXL work now strategy. [ of you We're again, of in versus cutoff have that those we'll a will there, can meaningful of have can't who number enrich different it where number we'll But exactly the at That's the what those portion I I expression have ] that's tell to the tumors. both levels be looking of be. doing a understand So patients expression And ongoing.

and I an expression don't non-small cancer, be share we've cell on to lower. given started lung AXL that just In able cancer. expect cell update to the lung screening is non-small proportion of

year. more in come the we we've As previously, of to first next said that expect half

Operator

Michael online a Schmidt Guggenheim question. with is from

Michael Schmidt

How bispecific expect and the that their opportunity that obviously, study in dynamics market evaluating reported start for studies in do DLBCL. to and perhaps same that study? the CX second-line evaluating recently you Roche both and affect So antibody LOTIS-X you're LOTIS-X ZYNLONTA. data from positive setting

Ameet Mallik

I [indiscernible] data Yes. standpoint. impressive think the was Look, an from efficacy

I good that combinations of think a really toxins validated with approach. it is bispecifics

is to the talk of just mean and maybe what ] of going So both implications to LOTIS-X. [ Targo about for LOTIS-X for

doing years, you're there a median rituximab front, trial, R-GemOx. so our modern data, endpoint clinical been in in landscape. the LOTIS-X of R-GemOx I treatment the is in think with the plus recent And we're versus lot And primary hasn't On data PFS. especially as aware, large-scale the ZYNLONTA current

data [ R-GemOx at if I and roughly had opportunity PFS, the So arm the months provides Star seeing to that where you better. the a do data, think look clear -- X.X of us

of mean powered it to is better in so want want be I sure ZYNLONTA showed a difference well. because hope would prove confidence, to clearly gave even both we and to -- say, with make as I can R-GemOx. X-month clinically ZYNLONTA believe obviously much do because off we that relevant than it's be LOTIS-X than study. we the to be us than kind the has R-GemOx. opportunity Rituximab arms but that more that even better Obviously, better a But we study the we is would to to across to believe positive LOTIS-X don't constant

those reported second-line the also new community, very But setting. CRS, the as setting or any where a we do setting safety no [indiscernible]. -- for we've there's it progress plus who in even also don't accessible either in this in third in the we've not the makes seen have academic to option line any this no before, And but signals

the a exists going chemo community. There's I of lot be a combination. So think still R-based within use to that it's great

better to plus ZYNLONTA with tolerability so the rituximab, what than a profile talked today. exists has about opportunity better And we provide efficacy

of [indiscernible] GemOx. you obviously plus if Now LOTIS-X, at over months glofit XX showed with look

efficacy rate. with XX% bar the a So about CR and

So the is efficacy high. link bar

that be accommodations. pretty more therapies standpoint. what it's and going efficacy better matters think when buses I to we're comparable to need like an or clear about most from talk you That's potent

a we data a early seen in that's additive lots in data to around set think have believe even we expansion that. But show And with so as can or hope and I synergistic bar glofit, and the clearly effect. it we've

approach than the at obviously, XX% And when more rates. early And our level ZYNLONTA, significantly think meaningful. fact do running has you you the that's plus can we efficacy, glofit of ZYNLONTA plus I if rituximab range. and already in is opportunity data even safety that hopeful to And combining very potent the that showed that hopeful, we're very, rituximab believe better. We're CR look get XX% we to glofit

continue that, bispecific, we saw to opportunity the reduced especially accessibility our which But enable look regimen. CRS, the a in we dosing addition neurotoxicity we which broader ZYNLONTA. in only that's show you for the the way reduce And of to have dosing When a is dose adverse patients. rates can chemo-free the you we're we're in to hopefully including with hoping nonsystemic GemOx also and some we see can I what to think not in grade in which escalation, But events community, hope cumulative that of at toxicities where irreversible the neuropathy. combination and

opportunity an a follow-on. efficacy there's think for the I and on safety improve both to

Michael Schmidt

Great. cell guidelines data lymphoma that those sometime there may wait the Or just regarding a the to presented, just interim you an And that follicular would marginal to results plan possibility? press. full for studies? had prior that include be of if opportunity X completion the publishing into need wondering is to you obviously, and I then

Ameet Mallik

and I it's publication. Yes, a but full at to I major going medical a think concomitant presentation congress when completion, possible think the it's is before require

driven you [ journer. the BTK added guidelines a example, zone, latest I need be -- inhibitor, position preferred at to data of guidelines, we've patients. But driven ] think course, And a by in in XX last the for the study. a has you also a whenever which marginal to the seen, the of going medical and the it's submit publication want do investigators key to

in and that it looks the good the case the of that So of patients. study full is data data gets possible completion XX published the before

commit can't I yet. But

and but be number by we've not major a the sufficient unmet of need when efficacy. And there's driven that obviously, it I data a of data-driven durability the talk we're they regulators efficacy in that areas, of both closely and very the that to given think get once seen that then But can meaningful patients go it's to published going only sure there plan these with could in investigators to published. then be to we see open a amount to is of inclusion. the course, And working make journal. would

Operator

Cheng is a from JPMorgan Brian with online question.

Lut Ming Cheng

in some sales, Maybe prescriber in market? year? just how to growth your back What And in there in going you see you it the rest growth be can that of will able the whether confident your of variability some base explained the you is be the continued for community? growth seems the academic ZYNLONTA institutions. are that of currently versus comment by to inventory are on at build seeing you interest any -- Can

Operator

Please stand by.

Your momentarily. conference will begin

This concludes for today's participating. Thank conference call. you

disconnect. now may You

ADC Therapeutics (ADCT) 6 Aug 242024 Q2 Earnings call transcript