ADC Therapeutics SA (NYSE:ADCT) Q3 2023 Earnings Call Transcript

Ameet Mallik: Yes. And then just one thing to add to LOTIS-7 maybe some context on numbers. If you think about each dose cohort, there’s three different dose cohorts possibly assuming a safety threshold on that. At each dose cohort, we’re doing six patients, because in LOTIS-7 we’re studying the combination with both mosun and glofit, so there’s three patients in each. So theoretically, if you get through all three doses that could be up to 18 patients, right, if we get through all three dose cohorts. We believe we’ll be through dose escalation and potentially into expansion by the — in the first half of the year. So just to give you a context of numbers. Obviously, as the year goes on, we’re going to keep getting more and more patients and more and more follow-up in terms of the data. So we’re going to have a meaningful day in the first half of the year and probably even more meaningful data as you get into the second half of the year.

Unidentified Analyst: Thank you.

Operator: Thank you. One moment for our last question. Brian Cheng with JPMorgan is on the line with a question.

Brian Cheng: Hey, guys. Good morning. Thanks for taking my question. My first one is on just the trajectory of ZYNLONTA. Can you quantify or give us a qualitative view on how much of the disruption is due to competition versus restructuring of the commercial organization? How should we think of this underlying demand for ZYNLONTA and is the trajectory normalizing? And how do you feel about the next quarter or two? And I have a follow-up. Thank you.

Kristen Herrington-Smith: Sure. So it’s difficult to quantify the impact from each. What we do know is that the majority of the decline was due to the prolonged disruption from the field force restructuring. We feel that we felt the brunt of that in Q3. At the same time, the competitive environment intensified right, and as anticipated, bispecifics are playing a growing role in the academic setting. That is why our strategy is to focus on growing the opportunity in the community. That being said, ZYNLONTA will continue to play a role in the academic setting, and the good news is we are now set up with our model to capitalize on that opportunity in both settings. We feel that we’ve got the right strategy and the right team in place, and we’ll see the impact of their impact strengthen in the coming quarters.

Brian Cheng: And maybe just on competition. Can you talk about how the use of ZYNLONTA has been changed since the entry of bispecific and also the increasing use of CD19 CAR-T in the second line? And then just to follow up on your comments related to academic versus community doctors. How do you see about the split of academic versus community doc change? The ratio between the two change over the next couple of quarters? At what point do you think that you will be at a good time to, a good point to guide the Street on where — what the next year will look like for ZYNLONTA sales? Thank you.

Kristen Herrington-Smith: Sure. So I’m going to break it down just a little bit. So we’ve seen that bispecifics of that an increasing impact in the academic setting as their launch progressive — progresses. We see them as being used in the post-CAR-T patient or in some cases where patients won’t necessarily get to CAR-T. So that’s where we’ve seen their early use. And as anticipated, we’ve seen the majority of the use really in those academic settings because they are equipped to handle complex therapies like bispecifics. At the same time, we also know that not every patient will get to that academic center, whether if they don’t have access to it or they are unwilling to travel and commit to going to an academic center, whether it’s for a CAR-T or bispecific.