Why ADC Therapeutics Shares Are Rising Today

ADC Therapeutics SA ADCT shares are trading higher by 11.56% to $10.23 Friday afternoon after the company entered into an exclusive license agreement with Swedish Orphan Biovitrum for the development and commercialization of ZYNLONTA.

Under the terms of the agreement, ADC Therapeutics says the company will receive an upfront payment of $55 million, and is eligible to receive $50 million upon regulatory approval of ZYNLONTA in third-line DLBCL by the European Commission and up to approximately $330 million in additional regulatory and sales milestones.

ADC Therapeutics says the company will also receive a percentage of royalties ranging from the mid-teens to the mid-twenties based on net sales of ZYNLONTA in Sobi's territories. Sobi will share a portion of select global ZYNLONTA clinical trial costs.

"We are thrilled to establish this important partnership with Sobi to continue expanding our global reach to bring ZYNLONTA to as many patients as possible worldwide," said Ameet Mallik, Chief Executive Officer of ADC Therapeutics.

"Sobi has a strong global commercial infrastructure, proven capabilities in the areas of hematology and rare diseases, and importantly, shares our passion for improving the lives of patients."

See Also: Why Twitter Stock Is Falling Today

ADC Therapeutics is a commercial-stage oncology-focused biotechnology company.

According to data from Benzinga Pro, ADC Therapeutics has a 52-week high of $32.00 and a 52-week low of $5.52.