ADC Therapeutics Announces $325M Financing Agreement With HealthCare Royalty

ADC Therapeutics SA ADCT has entered into a royalty purchase agreement with HealthCare Royalty Partners for up to $325 million.
ADC Therapeutics will receive $225 million upon closing, with an additional $100 million in potential near-term milestone payments related to Zynlonta (loncastuximab tesirine).
In exchange, HealthCare Royalty will receive a 7% royalty on worldwide net sales and licensing revenue from Zynlonta, except greater China, Singapore, and South Korea.
HealthCare Royalty will also receive a 7% royalty on worldwide net sales and licensing revenue from Cami (camidanlumab tesirine) (subject to limited carve-outs).
The royalty of 7% terminates upon payment of 2.25x to 2.50x the purchase price.
Zynlonta is an FDA-approved CD19-directed antibody-drug conjugate (ADC) for adult patients with relapsed or refractory (r/r) large B-cell lymphoma.
Cami is an ADC comprised of a monoclonal antibody that binds to CD25. It is being evaluated in a Phase 2 trial for R/R Hodgkin lymphoma and a Phase 1b trial as monotherapy and in combination with pembrolizumab in solid tumors.
Price Action: ADCT shares are up 8.81% at $28.16 during the market session on the last check Thursday.