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On Monday, H.C. Wainwright reaffirmed its Buy rating and $8.00 price target for ADC Therapeutics (NYSE:ADCT) stock, representing significant upside from the current price of $2.02. According to InvestingPro data, analyst targets range from $6 to $10, with the stock currently trading near its 52-week low of $1.71.
The firm's endorsement follows ADC Therapeutics' announcement that it has completed enrollment for its LOTIS-5 Phase 3 trial, which evaluates ZYNLONTA in combination with rituximab for the treatment of relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL). While the company shows promise in its clinical developments, InvestingPro analysis reveals challenges with a negative gross profit margin and rapid cash burn rate.
ZYNLONTA, which received accelerated approval from the FDA in 2021, is currently being studied in a randomized multicenter trial aimed at confirming its accelerated approval and potentially expanding its label. The first part of the trial enrolled twenty patients and reported an overall response rate (ORR) of 80% with a complete response (CR) rate of 50%, without the emergence of new safety concerns.
The second part of the trial involves patients with 2L+ DLBCL being randomized to receive ZYNLONTA with rituximab or a combination of rituximab, gemcitabine, and oxaliplatin. The primary goal of LOTIS-5 is to measure progression-free survival, with additional endpoints including overall survival, ORR, CR rate, and duration of response, alongside the frequency and severity of adverse events.
Topline results for the primary endpoint are expected by the end of 2025, with a subsequent regulatory submission to the FDA planned for the first quarter of 2026. If all goes according to plan, approval could be granted by late 2026.
The positive trial enrollment completion has led H.C. Wainwright to restate its positive stance on ADC Therapeutics' stock with a maintained price target. For deeper insights into ADCT's valuation and financial health metrics, including 8 additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, ADC Therapeutics reported positive preliminary results from a clinical trial assessing the combination of its drug ZYNLONTA with glofitamab for the treatment of relapsed or refractory diffuse large B-cell lymphoma. The trial's efficacy analysis revealed a best overall response rate of 94% based on Lugano criteria, with a complete response rate of 72%. The company's shareholders approved amendments to its articles of association, resulting in an increase in the company's capital range.
ADC Therapeutics also reported an increase in net product revenues during its Third Quarter 2024 Earnings Conference Call, with Q3 2024 net product revenues of $18 million, totaling $52.9 million year-to-date. However, the company reported a net loss of $44 million for Q3 2024. ADC Therapeutics plans to present findings from indolent lymphoma studies at the American Society of Hematology Meeting in December 2024.
These are recent developments that investors should keep in mind. The company is focused on expanding the use of ZYNLONTA in hematology and developing its exatecan-based platform for solid tumors. ADC Therapeutics anticipates peak sales potential for ZYNLONTA to exceed $80 million.
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