ADC Therapeutics Plunges 53% as Zynlonta Trial Shows Higher Patient Deaths
ADCT is trading near its 52-week low of $2.55 (44% below the low).
Summary
ADC Therapeutics shares are plunging by over 50% in premarket trading after its Phase 3 LOTIS-5 trial for blood cancer drug Zynlonta showed a significantly higher death rate in the treatment arm (13.2%) compared to the control arm (4.6%). This safety concern overshadows the trial's success in meeting its primary efficacy endpoint. This news follows yesterday's initial reports of positive topline results, which were then quickly followed by an after-hours stock plunge as the full data, including safety, became known. Zynlonta currently has accelerated FDA approval, and this confirmatory study is crucial for full approval, which is now at risk. The company plans to meet with the FDA in August and submit a supplemental application in the fourth quarter.
At the time of this announcement, ADCT was trading at $1.44 on NYSE in the Life Sciences sector, with a market capitalization of approximately $391.7M. The 52-week trading range was $2.55 to $4.98. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.