Wang & Lee Group board approves 250-to-1 reverse share split
Guggenheim raised the price target on ADC Therapeutics (NYSE: ADCT) stock to $10.00 from $7.00 on Friday, maintaining a Buy rating following positive clinical trial updates for the company’s cancer treatment. The stock, currently trading at $3.67, has shown remarkable momentum with a 94% gain over the past six months, according to InvestingPro data.
The price target increase comes after ADC Therapeutics released new data from its Phase 1b LOTIS-7 study testing Zynlonta in combination with glofitamab in relapsed/refractory diffuse large B-cell lymphoma (DLBCL). The updated results showed a 93.3% overall response rate and 86.7% complete response rate in 30 evaluable patients, maintaining strong efficacy seen in previous interim readouts. While the clinical results are promising, InvestingPro analysis indicates the company is quickly burning through cash, with negative EBITDA of $124 million in the last twelve months.
ADC Therapeutics plans to present final results from the fully enrolled study in the second half of 2025 and announced expansion of the LOTIS-7 trial to 100 patients at the higher Zynlonta dose. The company aims to support potential regulatory discussions in 2026, while its LOTIS-5 study remains on track to report Phase 3 results by the end of 2025.
The company also announced a $100 million private placement financing to support Zynlonta’s ongoing clinical programs and commercialization in earlier line DLBCL treatments. A corporate restructuring was simultaneously announced, including a 30% reduction in workforce and closure of UK operations.
Guggenheim cited a higher probability of success for the LOTIS-7 opportunity as the primary reason for raising its price target on ADC Therapeutics stock.
In other recent news, ADC Therapeutics SA has secured $100 million through a private investment in public equity financing. The funds are earmarked for the clinical development and commercialization of its cancer drug ZYNLONTA, which has received accelerated approval from the FDA and conditional approval from the European Commission. In clinical developments, the combination therapy of ZYNLONTA with glofitamab demonstrated a 93.3% overall response rate in a Phase 1b trial for diffuse large B-cell lymphoma, with further data expected before the end of 2025. The company also reported a high response rate of 95.5% in another trial, highlighting the potential of ZYNLONTA in treating relapsed or refractory large B-cell lymphoma.
In the financial markets, Guggenheim Securities adjusted its outlook on ADC Therapeutics by lowering its price target to $7 while maintaining a Buy rating, following a decline in ZYNLONTA’s sales. Despite this, RBC Capital Markets reiterated an Outperform rating with a price target of $8, expressing optimism for the drug’s future, especially with upcoming data updates. ADC Therapeutics is also undergoing a restructuring, closing its UK facility and reducing its global workforce by 30% to extend its cash runway into 2028. These measures are part of a broader strategy to focus on promising drug candidates and optimize operational efficiencies.
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