ADC Therapeutics, Sobi Ink European Licensing Pact For Lymphoma Drug

ADC Therapeutics SA ADCT has entered into an exclusive license agreement with Swedish Orphan Biovitrum AB BIOVF for the development and commercialization of Zynlonta for all hematologic and solid tumor indications outside of the U.S., Greater China, Singapore, and Japan.
ADC Therapeutics and Sobi intend to make Zynlonta available following a regulatory decision expected by Q1 of 2023.
ADC Therapeutics will receive an upfront payment of $55 million.
It is eligible to receive $50 million upon regulatory approval of Zynlonta in third-line diffuse large B-cell lymphoma by the European Commission and up to approximately $330 million in additional regulatory and sales milestones.
Related: HC Wainwright Says This Lymphoma Candidate Has Better Response Rates Than Approved Medications.
ADC Therapeutics will also receive a percentage of sales-based royalties ranging from the mid-teens to the mid-twenties.
Sobi will share a portion of select global Zynlonta trial costs.
In April 2021, the FDA granted accelerated approval to Zynlonta as the first and only CD19-targeted ADC as a single-agent treatment for adult patients with relapsed or refractory DLBCL after two or more lines of systemic therapy.
Price Action: ADCT shares closed higher by 2.46% at $9.16 on Thursday.