ADC Therapeutics SA (NYSE:ADCT) has seen notable activity from its significant shareholders, Redmile Group, LLC, and RedCo II Master Fund, L.P. According to a recent filing, these entities acquired a total of 200,000 common shares on December 11, 2024, with a total transaction value of approximately $609,000. The shares were purchased at prices ranging from $2.28 to $3.81 per share. Currently trading at $1.89, the stock appears undervalued according to InvestingPro analysis, despite experiencing significant volatility with a -39.6% decline over the past week.
The purchases were made by private investment vehicles managed by Redmile Group, LLC, which includes RedCo II Master Fund, L.P. These transactions reflect Redmile's continued interest in the pharmaceutical company, which specializes in the development of targeted antibody-drug conjugates for the treatment of cancers. InvestingPro data shows the company maintains strong liquidity with a current ratio of 4.92, though analysts anticipate continued challenges with profitability this year.
Jeremy Green, the principal of Redmile, who signed the report, is a ten percent owner of ADC Therapeutics. The report also notes that the purchases were made at a price higher than previous sales reported on December 6, 2024, ensuring no profits were earned from these transactions. For deeper insights into ADCT's valuation and 10+ additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, ADC Therapeutics, a biotechnology company, has reported encouraging preliminary results from a clinical trial assessing its drug ZYNLONTA in combination with glofitamab for the treatment of relapsed or refractory diffuse large B-cell lymphoma. The trial's efficacy analysis revealed a highly promising overall response rate. Despite this, the company's shares experienced a significant drop.
On the financial front, ADC Therapeutics announced an increase in its capital range following shareholder approval of amendments to its articles of association. The company also reported Q3 2024 net product revenues of $18 million, showing a steady financial growth. However, it also reported a net loss of $44 million for the same quarter.
In other developments, ADC Therapeutics is nearing completion of enrollment for the LOTIS-5 Phase III study of ZYNLONTA, with data expected by the end of 2025. Interim data from the LOTIS-7 study is anticipated in December 2024. The company is also focused on expanding the use of ZYNLONTA in hematology and developing its exatecan-based platform for solid tumors. These are recent developments that investors should keep in mind.
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