Cantor Fitzgerald Cuts ADC Therapeutics Price Target On 'Repositioned Zynlonta Pipeline Strategy'

Following Q4 FY21 results, Cantor Fitzgerald has lowered the price target on ADC Therapeutics SA ADCT to $26 from $45 and keeps an Overweight rating.
Analyst Brian Cheng notes that the repositioning of Zynlonta's pipeline strategy in diffuse large B-cell lymphoma (DLBCL) came as a surprise, given the multiple Zynlonta combination trials that ADC had ongoing and planned for the near-term.
The analyst awaits more color on the Rituxan combination's differentiation vs. Monjuvi and Polivy near-term.
In the Q4 earnings release, ADC announced discontinuing the Phase 2 LOTIS-3 trial of Zynlonta combined with ibrutinib in third-line DLBCL and Mantle cell lymphoma (MCL).
The Company also announced that the comparator agent in Phase 2 LOTIS-6 study, idelalisib, was recently withdrawn from the follicular lymphoma market.
As such, ADC has voluntarily paused the study and will consult with its clinical advisors and the U.S. Food and Drug Administration (FDA) on the optimal path forward.
Price Action: ADCT shares are down 0.95% at $14.63 during the market session on the last check Friday.

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