ADC Therapeutics Secures $60 Million for Growth and Innovation
ADC Therapeutics Secures $60 Million for Growth and Innovation
ADC Therapeutics SA (NYSE: ADCT), a leader in antibody drug conjugates (ADCs), has exciting news to share. The company is embarking on a pivotal journey by securing a $60 million private investment in public equity (PIPE) with institutional investors. Through this pipeline, ADC Therapeutics will sell 11.3 million common shares at $4.00 each, alongside pre-funded warrants for an additional 3.8 million shares at $3.90 per warrant, aiming to enhance its position in the biotech realm.
This initiative is spearheaded by TCGX and involves prominent engagement from Redmile Group and other investors eager to support ADC’s vision. The gross proceeds, estimated at $60 million prior to fees and expenses associated with placement agents, are significant for ADC Therapeutics as it sets strategic growth plans into motion.
The anticipated closure of this PIPE is expected to unfold on a date in the near future, pending customary conditions being met. The net proceeds from this financing round are earmarked for advancing the commercial expansion efforts of ZYNLONTA, ADC's flagship product. This funding will also serve to fortify the company’s balance sheet and cover general operational costs.
Ameet Mallik, CEO of ADC Therapeutics, expressed optimism regarding this financing, stating, "This financing enhances our ability to prepare for and execute the potential relaunch of ZYNLONTA in the future. This also strengthens our financial stability, allowing us to envision sustainable growth long-term. Upcoming data catalysts later this year and in the next several years will be pivotal for us."
The projected net revenues from ZYNLONTA sales are expected to reach approximately $15.8 million for a recent quarter, while the company's cash reserves, including cash equivalents, stood at $234.7 million as of a recent month. Once accounting for the estimated proceeds from the PIPE, the total cash and cash equivalents could soar to around $292.3 million, offering a robust cushion for operations moving ahead.
This securities offering is not a public offering and adheres to regulations under certain provisions of the Securities Act. Notably, the securities being offered will not be registered nor can they be reoffered in the U.S. without an effective registration statement, underscoring the strategic approach ADC Therapeutics is taking in this financing round.
Jefferies has stepped in as the placement agent for the PIPE, while legal expertise is provided by Davis Polk & Wardwell LLP and Homburger AG, ensuring that the company navigates these complexities with seasoned guidance.
Additionally, an updated corporate presentation is now available in the Investor section on their website, providing even deeper insights into the company's positioning and potential.
Understanding ZYNLONTA
ZyNLONTA is an advanced CD19-directed antibody drug conjugate that operates on a unique mechanism. Once attached to a cell expressing CD19, ZYNLONTA is internalized, allowing a potent payload to act destructively at the genetic level, leading to cell cycle arrest and eventual cell death. This innovative treatment option received both FDA and EMA approval for use in adults suffering from relapsed or refractory large B-cell lymphoma, demonstrating the effectiveness of ZYNLONTA across a range of patient cases.
The groundwork laid by this company underscores its dedication to challenging the status quo in oncology and hematologic treatment landscapes. With FDA’s accelerated approval and the ongoing investigations expanding its application in other B-cell malignancies, ZYNLONTA establishes a powerful example of how ADC technology can revolutionize therapy.
About ADC Therapeutics
Based in Biopôle, Switzerland, ADC Therapeutics (NYSE: ADCT) is driving the advancement of antibody drug conjugate technology. The company is enriching the treatment protocols for patients battling both hematologic malignancies and solid tumors. Through pioneering therapies like ZYNLONTA and multiple standalone clinical projects, ADC Therapeutics is committed to transforming the healthcare experience through innovative treatments.
With solid foundations and a clear vision, ADC Therapeutics is positioned not only to thrive but also to set new benchmarks in cancer treatment innovation.
Frequently Asked Questions
What is the purpose of the $60 million PIPE financing?
The funding aims to support the commercial expansion of ZYNLONTA, strengthen the company’s financial position, and cover general operational needs.
Who led the PIPE financing for ADC Therapeutics?
The PIPE is led by TCGX, with participation from Redmile Group and other institutional investors.
When is the PIPE financing expected to close?
The anticipated closure is projected for a date in the near future, subject to customary closing conditions.
What is ZYNLONTA?
ZYNLONTA is a CD19-directed antibody drug conjugate designed to treat adult patients with relapsed or refractory large B-cell lymphoma.
What are ADC Therapeutics' future goals?
ADC Therapeutics aims to enhance its commercial growth trajectory and fund additional research into innovative therapies leveraging its proprietary ADC technology.
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