RBC initiated coverage for ADCTRBC initiated coverage of this company with PT at $33, current market cap over $2.1B, SP $27. They had about $371M as of end of June, their R&D expenses is about $40M per Q. Net loss for the Q was $72M, Their only commercial and lead drug So far sold $3.8M in the last two months. As per their R&D pipe line below. So they are a well-established targeted delivery company with few R&D programs in various stages for their ADCs, not much revenues so far already worth $2.1B based on their future prospects, high cash burn yet getting a PT over 20% higher than current SP. Now THTX is a phase1 PDC company with a ready phase3 NASH protocol and two legacy drugs selling annually short of $70M. Market value $338M?
https://www.adctherapeutics.com/our-pipeline/
ADC Therapeutics
ADCT proves payload potency has its place – we
see upside ahead as pipeline gains recognition
Our view: We initiate coverage of ADCT with an Outperform, Speculative
Risk rating and a $33 price target. We see ADCT as a promising
ADC Developer with upside from Zynlonta’s indication expansion (initial
indication is niche), Cami’s potential for accelerated approval, rapid
pipeline expansion, and potential for M&A interest should ADCT’s pipeline
prove synergistic with existing therapeutics.