LAUSANNE - ADC Therapeutics SA (NYSE: ADCT), a commercial-stage biotechnology company, has announced an underwritten public offering of its securities, which is expected to generate gross proceeds of approximately $105 million. The offering, which is set to close on May 8, 2024, includes 13,411,912 common shares priced at $4.900 each and pre-funded warrants to purchase 8,163,265 common shares at $4.812 per warrant.
Jefferies, Guggenheim Securities, and Cantor are serving as joint book-running managers for the offering. According to the company's press release, a registration statement for these securities has already been declared effective by the U.S. Securities and Exchange Commission (SEC) as of March 14, 2024.
The Lausanne-based firm specializes in targeted antibody-drug conjugates (ADCs) and is known for its FDA-approved drug ZYNLONTA, indicated for the treatment of relapsed or refractory diffuse large B-cell lymphoma. The company's pipeline includes multiple ADCs in both clinical and preclinical stages.
The information provided is based on a press release statement from ADC Therapeutics.
InvestingPro Insights
As ADC Therapeutics SA (NYSE: ADCT) navigates through its latest public offering, insights from InvestingPro reveal a mixed financial landscape for the biotech firm. The company's market capitalization currently stands at $405.79 million, reflecting its position in the market. Investors should note the company's price-to-earnings (P/E) ratio, which is reported at -1.68, suggesting that the company is not currently generating profits relative to its share price. This is further supported by a negative adjusted P/E ratio for the last twelve months as of Q4 2023, at -1.69.
While the company's revenue for the same period was $69.56 million, it experienced a significant decline in revenue growth, down by 66.86%. The gross profit margin was deeply negative at -80.72%, indicating challenges in maintaining profitability from its revenue. Despite these figures, ADC Therapeutics has seen a significant return over the last week, with a price total return of 8.89%. Additionally, the stock has witnessed a substantial 150.0% return over the past year, which could be of interest to investors looking for growth potential in share price.
Among the InvestingPro Tips for ADCT, two stand out: the company is quickly burning through cash, which could be a concern for long-term sustainability, and analysts do not anticipate the company will be profitable this year. These insights may be particularly relevant for investors considering the current public offering and evaluating the company's future prospects.
For those seeking a deeper analysis, there are 11 additional InvestingPro Tips available, which could provide a more comprehensive understanding of ADCT's financial health and market position. Interested investors can access these tips and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.