ADC Therapeutics Announces Strategic Reorganization to Support ZYNLONTA® Growth Opportunities and Regulatory Priorities
ADC Therapeutics SA, a leader in the field of antibody drug conjugates (ADCs), has announced a strategic reorganization that will involve a global workforce reduction of approximately 17 percent. This move is expected to generate annualized estimated savings of about $10 million. The company aims to enhance its financial flexibility while focusing on key regulatory and clinical milestones, including the upcoming submission of the LOTIS-5 supplemental Biologics License Application (sBLA) and the release of comprehensive data from the LOTIS-7 trial by the end of 2026.
According to the company, the workforce reduction is influenced by the anticipated completion of the LOTIS-5 and LOTIS-7 trials within the year, as well as the pursuit of operational efficiencies. The reorganization is designed to ensure sufficient resources for essential clinical, regulatory, and manufacturing activities, while maintaining the necessary support for the ZYNLONTA® (loncastuximab tesirine-lpyl) medical affairs and commercial functions.
Ameet Mallik, Chief Executive Officer of ADC Therapeutics, stated, "As we further assess the Phase 3 LOTIS-5 trial outcomes, including feedback from key medical experts, we continue to believe in the favorable overall benefit-risk profile and look forward to our pre-sBLA meeting with the U.S. Food and Drug Administration in August." He emphasized that the reorganization would bolster financial flexibility in preparation for upcoming regulatory milestones related to LOTIS-5.
The company is scheduled to meet with the FDA in August 2026 to discuss the regulatory path for ZYNLONTA in combination with rituximab for the treatment of relapsed or refractory diffuse large B-cell lymphoma. ADC Therapeutics anticipates submitting the sBLA in the fourth quarter of 2026. Moreover, efforts will continue with the LOTIS-7 trial, evaluating ZYNLONTA in combination with glofitamab, with data expected by the close of 2026, as well as support for Phase 2 investigator-initiated trials exploring ZYNLONTA in indolent lymphomas.
As part of the workforce reduction, ADC Therapeutics estimates it will incur one-time pre-tax charges of approximately $3 million for severance and related costs, most of which will be recognized in the second quarter of 2026. The company projects that it will have a cash runway that extends at least into 2028.