ADC Therapeutics Cuts Price In Second IPO Attempt

May 11, 2020 12:29 PM ETADC Therapeutics SA (ADCT)ABBV, AZN, AZNCF, BNY, CELG, GLAXF, GSK, JNJ, NVS, NVSEF, PFE, SNY, SNYNF, TAK, TKPHF

Summary

  • ADC Therapeutics has filed revised terms for a $125 million U.S. IPO.
  • The firm is developing drug treatment candidates for blood cancers and solid tumors.
  • With a markedly lower price and very strong investor support, the IPO may be worth considering for patient life science investors.
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Quick Take

ADC Therapeutics (NYSE:ADCT) intends to raise $125 million from the sale of its common stock, per an amended registration statement.

The company is advancing a pipeline of drug candidates for the treatment of blood cancers and solid tumors.

ADCT is making a new attempt to go public at a reasonable valuation and with strong existing investor interest in supporting the IPO.

Company & Technology

Epalinges, Switzerland-based ADC was founded as a spin-off of Spirogen to develop antibody drug conjugates (ADCs - hence the company's name) for the treatment of hematological and solid tumor cancer conditions.

Management is headed by CEO Christopher Martin, who has been with the firm since its formation and was previously CEO of Spirogen, which was acquired by AstraZeneca (AZN) in 2013.

Below is a brief overview video of antibody drug conjugates:

Source: ADC Review

The firm's lead candidates are Lonca and Cami. Lonca has shown strong overall response rates for the treatment of refractory diffuse large B-cell lymphoma.

Cami, which it is developing in collaboration with Genmab A/S, has also shown a high overall response rate for the treatment of relapsed or refractory Hodgkin lymphoma.

Below is the current status of the company’s drug development pipeline:

Source: S-1

Investors in the firm have invested at least $550 million and include Auven Therapeutics, AstraZeneca (AZN) and HPWH TH AG.

Market & Competition

According to a 2017 market research report by Grand View Research, the market for blood cancer treatments was $35.6 billion in 2016.

This represents a forecast CAGR (Compound Annual Growth Rate) of 10.48% from 2018 to 2025.

Key elements driving this expected growth are an increasing number of elderly persons who account for a higher incidence of blood cancer conditions.Below is a chart showing the historical and expected future growth of blood cancer

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This article was written by

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