ADC Therapeutics SA (ADCT) has filed again to raise $100 million in a U.S. IPO, according to an F-1 registration statement.

The company is a late-stage biopharma developing treatments for blood and solid tumor cancers.

ADCT attempted to IPO in September 2019 at an enterprise value of $1.6 billion.

Switzerland-based ADC was founded as a spin-off of Spirogen to advance a pipeline of antibody drug conjugates (ADCs) for the treatment of hematological and solid tumor cancer conditions.

Management is led 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) - Get Report in 2013.

Below is a brief overview video of antibody drug conjugates:

Source: ADC Review

The firm's two lead drug 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  (GMAB) - Get Report, 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: Company F-1 Registration Statement

Source: Company F-1 Registration Statement

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

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 incidence in the U.S.:

Source: Grand View Research

Source: Grand View Research

Additionally, increasing awareness of blood cancer symptoms and increased government funding of research initiatives will add to the expected growth of the industry.

Major competitive vendors that provide or are developing treatments include:

  • Pfizer
  • Sanofi
  • Bristol-Myers Squibb
  • AbbVie
  • Novartis AG
  • GlaxoSmithKline
  • Celgene
  • Johnson & Johnson
  • Takeda Pharmaceuticals
  • CytomX Therapeutics
  • Seattle Genetics

ADC’s recent financial results are typical of a development stage biopharma firm in that they feature little revenue and high R&D and G&A expenses associated with advancing its pipeline of drug treatment candidates.

Below are the company’s financial results for the past two years (Audited IFRS):

Source: Company registration statement

Source: Company registration statement

As of December 31, 2019, the company had $115.6 million in cash and $26.5 million in total liabilities. (Unaudited, interim)

ADC intends to raise $100 million in gross proceeds from an IPO of its common shares, although the final amount may be different.

Management says it will use the net proceeds from the IPO to advance Lonca and Cami through trials, build out commercial operations in the U.S. and further develop its early stage drug programs.

Management’s presentation of the company roadshow is not available.

Listed bookrunners of the IPO are Morgan Stanley, BofA Securities and Cowen.


ADCT seeks a large amount of public capital for its ambitious pipeline development plans.

Its lead candidate is ADCT-402, which is currently in pivotal Phase 2 trials for relapsed or refractory DLBCL and in other trials in combination with other treatments. The candidate has produced an impressive overall response rate in trials so far.

Management says it expects to report top-line data from these various trials in the second half of 2020 for ADCT-402 and the first half of 2021 for ADCT-301, assuming no delays, which cannot be guaranteed in light of the supply chain and other disruptions from the Covid19 pandemic.

The market opportunities for the various blood cancers the firm’s candidates target are large and expected to grow markedly due to aging demographics worldwide.

ADCT is collaborating on its ADCT-301 lead product development with Genmab. I view major pharma collaborations as a positive scientific and business signal for biopharma firms seeking to IPO.

Morgan Stanley is the lead left underwriter and IPOs led by the firm over the last 12-month period have generated an average return of 6.4% since their IPO. This is a mid-tier performance for all major underwriters during the period.

ADCT last filed to go public in September 2019 at a proposed enterprise value of $1.6 billion, which is substantially higher than normal for a typical biopharma IPO, so I would expect to see an Enterprise Value in the similar neighborhood.

When we learn more IPO details, I’ll provide an update.

Expected IPO Pricing Date: To be announced.