Buy Rating Affirmed for ADC Therapeutics on Strong Zynlonta Clinical Data and Strategic Growth Outlook

Analyst Naureen Quibria from Capital One Financial reiterated a Buy rating on ADC Therapeutics (ADCT – Research Report) and keeping the price target at $10.00.

Naureen Quibria has given his Buy rating due to a combination of factors pertaining to ADC Therapeutics’ recent clinical and operational progress. The Swiss-based oncology company has shown impressive clinical data from a study of Zynlonta in Marginal Zone Lymphoma (MZL), indicating substantial efficacy with an overall response rate (ORR) of 93.3%. This far exceeds typical complete response (CR) rates in the second-line (2L) MZL setting, which are typically under 30%. Additionally, the safety profile of Zynlonta has been favorable, with only two patient discontinuations, both of whom maintained their complete response status even after discontinuing the treatment.
Furthermore, the financial position and strategic growth perspective of ADC Therapeutics bolster the Buy rating. The company ended a recent quarter with a solid cash position and expects an underwritten offering to extend its financial runway into mid-2026. ADCT’s growth strategy includes expanding Zynlonta into earlier lines of Diffuse Large B-Cell Lymphoma (DLBCL) and potentially into other indolent lymphomas, thereby targeting a substantially larger market opportunity. Naureen Quibria’s assessment reflects optimism regarding the company’s development pipeline, its market strategy, and the potential regulatory path forward based on the ongoing positive trial results.

Quibria covers the Healthcare sector, focusing on stocks such as ADC Therapeutics, Fennec Pharmaceuticals, and Day One Biopharmaceuticals. According to TipRanks, Quibria has an average return of -22.1% and a 23.21% success rate on recommended stocks.

In another report released today, H.C. Wainwright also reiterated a Buy rating on the stock with a $8.00 price target.

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ADC Therapeutics (ADCT) Company Description:

ADC Therapeutics SA is a United States-based clinical-stage oncology-focused biotechnology company. It is involved in the development of antibody-drug conjugates for patients suffering from hematological malignancies and solid tumors. The company’s product candidate includes ADCT-402, ADCT-301, ADCT-602, and ADCT-601.