ADC Therapeutics Slashes 17% of Workforce, Eyes $10M Annual Savings Amid Zynlonta Focus
ADCT sits 44% above its 52-week low of $0.78.
Summary
ADC Therapeutics announced a 17% workforce reduction and company reorganization, aiming to focus resources on its lead cancer drug Zynlonta. This strategic move follows a significant stock plunge earlier this month after the full Phase 3 LOTIS-5 trial data for Zynlonta was released. The company anticipates annual savings of $10 million from these changes, extending its cash runway until at least 2028. A one-time pretax charge of $3 million for severance is expected. The company is preparing for a pre-supplemental Biologics License Application meeting with the FDA in August, with a planned supplemental filing in the fourth quarter.
At the time of this announcement, ADCT was trading at $1.12 on NYSE in the Life Sciences sector, with a market capitalization of approximately $146.3M. The 52-week trading range was $0.78 to $4.98. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.