ADC Therapeutics signs financial agreement for up to $325 Million

ADC Therapeutics’ ZYNLONTA, is approved by the FDA for the treatment of relapsed or refractory diffuse large B-cell lymphoma after two or more lines of systemic therapy. ZYNLONTA is also in late-stage clinical trials in combination with other agents. Cami is being evaluated in a late-stage clinical trial for relapsed or refractory Hodgkin lymphoma and in a Phase 1b clinical trial for various advanced solid tumours.

Under the terms of the $325 million financing agreement, ADC Therapeutics will receive $225 million upon closing and is eligible to receive an additional $75 million upon the first commercial sale of ZYNLONTATM in Europe and an additional $25 million upon the achievement of a near-term commercial milestone for ZYNLONTA. The proceeds to be used for continued development and commercialization of ZYNLONTA and Cami. Upon closing of this transaction, and together with the Company’s current cash balance and anticipated business plan, ADC Therapeutics will have a substantial multi-year working capital runway.

In exchange, HealthCare Royalty will receive a 7% royalty on worldwide net sales and licensing revenue from ZYNLONTA, with the exception of greater China, Singapore and South Korea, and a 7% royalty on worldwide net sales and licensing revenue from Cami –subject to limited carve-outs. Based on performance tests in 2026 and 2027, these royalty rates are subject to potential upward adjustment, up to a maximum of 10%.

HealthCare Royalty purchases royalties and uses debt-like structures to invest in commercial or near-commercial stage life science assets. HealthCare Royalty has $5.8 billion in cumulative capital commitments.

(Press release / RAN)