ADC Therapeutics Shares Plunge 38% on Zynlonta Trial Safety Concerns, Cost Cut Plans
ADCT is trading near its 52-week low of $2.55 (29% below the low).
Summary
ADC Therapeutics shares plunged 38% after-hours following the release of full Phase 3 LOTIS-5 trial data for its lymphoma drug, Zynlonta. While the drug met its primary endpoint for progression-free survival, the data showed a higher rate of serious adverse events and Grade 5 treatment emergent adverse events. This more complete data follows earlier reports today that only highlighted the positive primary endpoint. The company also announced it will evaluate near-term cost reductions and other value-maximizing alternatives, signaling financial pressure. The safety concerns complicate the path to FDA approval and commercial success for Zynlonta, a critical asset for the company.
At the time of this announcement, ADCT was trading at $1.80 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: Dow Jones Newswires.