AwesomeCapital: ADC beats, strong ZYNLONTA rebound, reiterates LOTIS‑5 data for Q2 2026

Tuesday, March 10, 2026

Q4 ZYNLONTA revenue rebounded 36% YoY after weak Q3, with volumes broadly stable.
Full-year ZYNLONTA revenue grew 6% YoY despite increased bispecific competition in third-line plus DLBCL.
Operating expenses fell mid‑single digits for 2025, and cost base cut ~50% over recent years.
Cash reached $261 million after two PIPE financings, extending runway at least into 2028.
Amended HealthCare Royalty financing agreement sharply reduces change-of-control payment obligations in exchange for new warrants.
Management reaffirmed LOTIS‑5 top-line progression-free survival data timing for Q2 2026.
LOTIS‑7 combo with glofitamab showed 90% ORR and 78% CR in 49 evaluable patients.
Company targets U.S. ZYNLONTA peak sales of $600 million–$1 billion across DLBCL and indolent lymphomas.
Near-term commercial growth remains limited, with major revenue inflection expected only after 2027 label expansions.
Key risk and main concern is LOTIS‑5 Phase III clinical/regulatory success in crowded DLBCL landscape, critical to long-term growth.
Management tone remained confident, emphasizing strong KOL support and strategic flexibility from the HCR amendment.

AwesomeCapital