ADC Therapeutics SA
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
ADCT$1.67+5.7%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001628280-26-056711
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001628280-26-072178
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 125 previous paragraphs and 148 current paragraphs.
66 unchanged; 42 reworded; 39 added; 15 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (39)
Current report
Recent Organizational and Partner Developments
Current report
On October 29, 2026, we announced that our ADC Therapeutics’ Japanese licensing partner, Tanabe Pharma Corporation (formerly Mitsubishi Tanabe Pharma Corporation), has submitted a marketing authorization application with Japan’s Ministry of Health, Labor and Welfare for ZYNLONTA to treat patients with relapsed or refractory DLBCL after two or more lines of systemic therapy. Tanabe Pharma has also entered into an exclusive sublicensing agreement with Nippon Shinyaku Co., Ltd. for the commercialization of ZYNLONTA in Japan.
Current report
Clinical Trial Updates
Current report
In October 2026 we announced new and updated data from the ZYNLONTA clinical program which will be shared across multiple abstracts, including five oral presentations, at the 68th American Society of Hematology (“ASH”) Annual Meeting taking place December 12–15, 2026, in New Orleans, Louisiana.
Current report
Across the presentations, the data provide additional insight into the depth and durability of response observed with ZYNLONTA across multiple B-cell lymphomas and treatment settings, including in difficult-to-treat patient populations. Oral presentations include expanded LOTIS-7 data evaluating ZYNLONTA in combination with glofitamab in r/r DLBCL and updated data evaluating ZYNLONTA in r/r MZL, as well as full results from the Phase 3 LOTIS-5r/r DLBCL study and data from investigator-initiated trials in r/r mantle cell lymphoma (“MCL”) and r/r Waldenström macroglobulinemia (“WM”).
Current report
LOTIS-7 Phase 1b study: ZYNLONTA plus glofitamab in relapsed or refractory DLBCL
Current report
Updated results from LOTIS-7 continue to demonstrate encouraging efficacy and safety findings with ZYNLONTA plus glofitamab, including in difficult-to-treat patient populations.
Current report
As of the data cutoff of as of June 15, 2026, at the ZYNLONTA 150 µg/kg starting dose + glofitamab:
Current report
•Among 97 efficacy-evaluable patients, the overall response rate (“ORR”) was 88.7%, and the complete response rate (“CRR”) was 75.3%.
Current report
•Patients had received a median of one prior treatment (range 1-5); 52.4% were primary refractory.
Current report
•In patients with primary refractory disease, ORR was 78.4% and CRR was 64.7%. Among patients previously treated with prior CAR-T therapy, ORR was 74.1% and CRR was 63.0%.
Current report
•At a median follow-up of 10.35 months, median duration of response, duration of complete response and progression-free survival (“PFS”) had not been reached. The 12-month duration of complete response rate was 79.0%.
Current report
•In an exploratory MRD analysis of 12 patients who achieved a complete response, 50% achieved undetectable MRD as early as Cycle 2, Day 1, and 11 had undetectable MRD at end of treatment.
Current report
•Cytokine release syndrome (“CRS”) occurred in 32% of treated patients, predominantly Grade 1 (25.2%) or 2 (5.8%). One Grade 3 CRS event was reported, and no Grade 3 or higher ICANS events occurred. Three Grade 5 treatment-emergent adverse events were reported.
Current report
Phase 2 IIT: Fixed-duration ZYNLONTA in relapsed or refractory marginal zone lymphoma
Current report
An investigator-led, multicenter Phase 2 study demonstrated high response rates and encouraging durability with fixed-duration ZYNLONTA in patients with relapsed or refractory MZL.
Current report
As of the July 1, 2026 data cutoff:
Current report
•Among 43 efficacy-evaluable patients, ORR was 93% and CRR was 74.4%.
Current report
•Patients had received a median of two prior treatments; 37% had primary refractory disease and 42% had experienced disease progression within 24 months of initial therapy.
Current report
•At a median follow-up of 23.2 months, the two-year PFS rate was 90.8%.
Current report
•The duration of response rate at 24 months was 90.9%.
Current report
•Among 46 treated patients, adverse events (“AEs”) were predominantly Grade 1–2. Grade 3 AEs (36 events) were reported in 23 patients (50%), and Grade 4 AEs (5 events) in five patients (10.9%). The most common Grade 3 events included anemia (n=5), lung infections (n=5), elevated ALT (n=4), alkaline phosphatase (n=3) and AST (n=1). Grade 4 events included neutropenia (n=2), thrombocytopenia (n=2) and hyponatremia (n=1). Four patients required dose reductions.
Current report
Phase 3 LOTIS-5 study: ZYNLONTA plus rituximab versus R-GemOx in relapsed or refractory DLBCL
Current report
Full results from the randomized Phase 3 LOTIS-5 study of 420 patients demonstrated a statistically significant improvement in the primary endpoint of PFS with ZYNLONTA plus rituximab compared with R-GemOx.
Current report
As of the data cutoff of February 16, 2026:
Current report
•Median PFS by independent review was 6.14 months with ZYNLONTA plus rituximab versus 4.73 months with R-GemOx (HR 0.73; 95% CI, 0.57–0.92; P=0.0083).
Current report
•ORR was 58.1% versus 45.2%, and CRR was 39.5% versus 26.7%, respectively.
Current report
•Median duration of complete response was 16.82 months versus 12.25 months. At 24 months, 48.5% versus 16.7% of patients who achieved a complete response remained in complete response.
Current report
•No statistically significant difference in overall survival was observed between treatment arms.
Current report
•Within the protocol-defined 105-day treatment-emergent adverse event reporting window, Grade 3 or higher events occurred in 74.0% versus 76.1% of patients, and Grade 5 events occurred in 13.2% versus 4.6%, respectively. Using a standard 30-day post-treatment window, Grade 5 events occurred in 1.5% versus 3.0%, respectively.
Current report
License revenues and royalties were $0.7 million for the three months ended September 30, 2026 and 2025, respectively.
Current report
Interest income was $5.4 million for the nine months ended September 30, 2026 as compared to $6.5 million for the nine months ended September 30, 2025, a decrease of $1.0 million or 15.9%. The decrease was primarily due to our lower average cash balances.
Current report
Subsequent to the end of the period, in October 2026, we restructured our liquidity profile, equity capital structure and outstanding debt obligations through a series of coordinated strategic transactions.
Current report
On October 22, 2026, we sold 12,911,347 common shares at $1.42 per share, and pre-funded warrants (the “October 2026 Pre-Funded Warrants”) to purchase 48,088,653 common shares at $1.32 per pre-funded warrant, which is the price per common share in the private placement minus the exercise price of CHF 0.08 per pre-funded warrant to certain institutional investors (collectively, the “October 2026 Private Placement”), resulting in net proceeds of $76.3 million.
Current report
In addition, on October 22, 2026, we prepaid $70.0 million of outstanding term loans under the Loan Agreement (inclusive of the Company’s September 30, 2026 amortization payment, plus related accrued interest, fees, and premiums) and an amendment to the Loan Agreement became effective which eliminated subsequent scheduled principal amortization, eliminated the minimum liquidity covenant and set the minimum trailing four-quarter U.S. ZYNLONTA sales covenant at $65.0 million for the quarter ending December 31, 2026 and each quarter thereafter. Following this prepayment, the outstanding principal balance under the Loan Agreement was $50.0 million. The exercise price for the warrants to purchase an aggregate of 527,295 common shares that were issued to the lenders on August 15, 2022 was lowered from $8.30 per share to $1.00 per share.
Current report
Furthermore on October 22, 2026, a second amendment (the “Second HCR Amendment”) eliminated the payment otherwise required solely upon a change of control and permits the Company (or its successor in interest) to exercise its option to buy out the remaining royalty obligations without a change of control by paying HCR $525 million (if the buyout occurs on or prior to December 31, 2029) or $750 million (if the buyout occurs on or after January 1, 2030), less the amount of royalties previously paid to HCR. If this option is not exercised, the royalty obligations under the HCR Agreement will continue until the Royalty Cap (as defined in the HCR Agreement). In addition, the Second HCR Amendment reduces the aggregate outstanding principal amount of third-party indebtedness of the Company and its subsidiaries are permitted to incur to $50.0 million. An uncured breach of this debt limitation covenant entitles HCR to elect to receive the non-performance payment equaling 1.5 times the difference between the $300 million aggregate purchase price and royalty payments and other qualifying credited amounts actually received by HCR, subject to a cure period. The exercise price for the warrants to purchase an aggregate of 9,834,776 common shares that were issued to HCR on February 18, 2026 was lowered from $3.81 per share to $0.10 per share.
Current report
On October 7, 2026, the Company entered into The Second HCR Amendment, which became effective on October 22, 2026 and eliminated the payment otherwise required solely upon a change of control and permits the Company (or its successor in interest) to exercise its option to buy out the remaining royalty obligations without a change of control by paying HCR $525 million (if the buyout occurs on or prior to December 31, 2029) or $750 million (if the buyout occurs on or after January 1, 2030), less the amount of royalties previously paid to HCR. If this option is not exercised, the royalty obligations under the HCR Agreement will continue until the Royalty Cap (as defined in the HCR Agreement). In addition, the HCR Warrants to purchase 9,834,776 common shares, which were issued on February 18, 2026 in connection with the First HCR Amendment, was lowered from $3.81 per share to $0.10 per share.
Current report
On October 22, 2026, we prepaid $70.0 million of outstanding term loans under the Loan Agreement (inclusive of the Company’s September 30, 2026 amortization payment, plus related accrued interest, fees, and premiums) and an amendment to the Loan Agreement became effective which eliminated subsequent scheduled principal amortization, eliminated the minimum liquidity covenant and set the minimum trailing four-quarter U.S. ZYNLONTA sales covenant at $65.0 million for the quarter ending December 31, 2026 and each quarter thereafter. Following this prepayment, the outstanding principal balance under the Loan Agreement was $50.0 million. The exercise price for the warrants to purchase an aggregate of 527,295 common shares that were issued to the lenders on August 15, 2022 was lowered from $8.30 per share to $1.00 per share.
Current report
For more information regarding the specific terms of these amendments, see Note 16, “Subsequent events” to our unaudited condensed consolidated financial statements included in this Quarterly Report.
Removed paragraphs (15)
Previous report
Recent Developments
Previous report
LOTIS-5 Clinical Trial Update
Previous report
In June 2026 we announced topline data from our Phase 3 LOTIS-5 confirmatory trial evaluating ZYNLONTA in combination with rituximab in patients with relapsed or refractory diffuse large B-cell lymphoma (“r/r DLBCL”). ZYNLONTA plus rituximab achieved statistical significance on the trial’s primary endpoint of progression-free survival (“PFS”) and demonstrated no detrimental effect on the key secondary efficacy endpoint of overall survival (“OS”). In addition, a higher complete response (“CR”) rate and duration of CRs (“DoCR”) were observed with ZYNLONTA plus rituximab. Overall, treatment emergent adverse event (“TEAE”) rates were similar between arms. Similar rates of overall Grade ≥3 TEAEs greater than 5% were observed across both arms, with hematologic TEAEs higher in the control arm and infection, hepatotoxicity (primarily increased Gamma-glutamyltransferase increased (GGT), and edema/effusion higher in the test arm. Serious adverse events (“SAEs”), TEAEs leading to study drug withdrawal, and Grade 5 events were higher in the test arm, with the majority of Grade 5 TEAEs in the test arm occurring in patients aged 75 years or older. We submitted full data to the 68th American Society of Hematology (“ASH”) Annual Meeting and Exposition.
Previous report
The LOTIS-5 trial is a randomized, open‐label, two‐arm, multicenter study evaluating ZYNLONTA plus rituximab versus the standard immunochemotherapy rituximab gemcitabine‐oxaliplatin (R‐GemOx), for the treatment of r/r DLBCL after one or more lines of systemic therapy. The study met the primary endpoint of PFS (per independent review committee) with statistical significance (HR = 0.73; p-value = 0.008 two sided), with a median PFS of 6.1 months for ZYNLONTA plus rituximab vs 4.7 months for R-GemOx. Overall survival showed no detrimental effect with ZYNLONTA plus rituximab compared to the control arm (HR = 0.96, impacted by the earlier use and a higher rate of new anti-lymphoma treatment switching in the control arm). Overall response rate (“ORR”) was 58.1% vs. 45.2%, CR rate was 39.5% vs. 26.7%, median duration of response (DOR) was 9.2 months vs. 7.7 months, and median DoCR was 16.8 months vs. 12.3 months for ZYNLONTA plus rituximab compared to R-GemOx, respectively. Of patients achieving CR, 48.5% vs. 16.7% remained in CR at 24 months in favor of ZYNLONTA plus rituximab. Of note, results in North America were consistent with the overall study results.
Previous report
Overall, TEAE rates were similar between arms (98.5% vs. 97.5%). Higher rates of SAEs were seen in the test arm (49.0% vs. 34.5%). Grade ≥3 TEAEs observed in > 5% of patients were hematologic (40.7% vs. 59.4%), followed by infection/ infestations (24.5% vs. 15.7%), then hepatotoxicity (primarily increased GGT) (17.2% vs. 8.1%) and oedema/effusion (7.4% vs. 0.5%) when comparing ZYNLONTA plus rituximab to R-GemOx. A higher rate of Grade 5 TEAEs was observed in the ZYNLONTA plus rituximab arm (27 pts/13.2%) vs. R-GemOx (9 pts/4.6%). Of note, the majority of Grade 5 TEAEs in the test arm occurred in patients aged 75 years or older. Higher rates of TEAEs leading to any drug withdrawal occurred in the ZYNLONTA plus rituximab arm (25.5% vs. 9.1%). In this study, the TEAE reporting window was defined as 105 days after the last dose of study treatment or the start of new anticancer therapy, whichever is earlier. The rates of TEAEs in this study were impacted by the longer overall TEAE observation time in the test vs. control arm (median 3.9 vs. 2.5 months). This difference is primarily driven by shorter treatment duration, a higher rate of and earlier switching to subsequent therapies and a higher rate of early withdrawal in the control arm.
Previous report
We recently held a pre-sBLA meeting with the FDA. During this meeting, the FDA noted substantial concerns regarding the benefit-risk or verification of clinical benefit observed in this trial based on the imbalance in Grade 5 events, when assessed in the context of a marginal treatment benefit. Following this meeting, we are assessing the best regulatory path forward and plans to provide an update on regulatory strategy and timing in the future. ZYNLONTA remains under accelerated approval as a monotherapy in 3L+ DLBCL and we plan to continue to commercialize in this setting.
Previous report
LOTIS-7 Clinical Trial Update
Previous report
In June 2026 we announced the completion of enrollment in the LOTIS-7 Phase 1b open-label clinical trial evaluating the safety and efficacy of ZYNLONTA in combination with the bispecific antibody glofitamab (COLUMVI®) in 100 patients with r/r DLBCL. Of note, consistent with other glofitamab trials, the protocol for LOTIS-7 recommends prophylaxis (including vaccinations) for viral, fungal, and bacterial infections (including PJP and herpesvirus), which was not a part of the LOTIS-5 protocol.
Previous report
Enrollment occurred in 30 total sites with 70% of patients in the U.S. and 30% in the EU. The study enrolled patients with baseline characteristics similar to other bispecific combination studies in this space and included 46% relapsed and 54% primary refractory patients with a median age of 66 years.
Previous report
Primary endpoints of the study include safety and tolerability. Secondary endpoints include ORR, duration of response, CRR, relapse free survival, PFS, and OS, as well as pharmacokinetics and immunogenicity. As part of the study protocol, anti-infective prophylaxis, intravenous immunoglobulin (in patients experiencing B-cell loss with an increased risk of infection) and vaccination are strongly recommended.
Previous report
Previously reported data from this study demonstrated an 89.8% ORR and 77.6% CR and a manageable safety profile across the 49 efficacy-evaluable patients with a minimum of 6 months of follow-up. We submitted LOTIS-7 data to ASH. We are preparing to submit the complete trial results for publication, which will then be submitted to compendia. We are also evaluating a regulatory pathway for this combination and plan to submit for Breakthrough Therapy designation (“BTD”) this year.
Previous report
The University of Miami Sylvester Comprehensive Cancer Center-led multi-center trials of ZYNLONTA in combination with rituximab to treat r/r follicular lymphoma (“FL”) and ZYNLONTA as a monotherapy to treat marginal zone lymphoma (“MZL”) are ongoing. Updated MZL data were submitted to ASH and we anticipate presentation of this data before the end of the year with publication and compendia submission to follow. We also anticipate presentation of updated FL data in Q2 2027. We intend to assess potential regulatory pathways and plan to submit for BTD for MZL.
Previous report
License revenues and royalties were $0.6 million for the three months ended June 30, 2026 as compared to $0.8 million for the three months ended June 30, 2025. The decrease was attributable to decreased royalty revenue from our exclusive license agreement with SOBI to develop and commercialize ZYNLONTA in all territories other than the United States, greater China, Singapore and Japan.
Previous report
Interest income was $3.8 million for the six months ended June 30, 2026 as compared to $4.0 million for the six months ended June 30, 2025, a decrease of $0.2 million or 4.4%. The decrease was primarily due to lower yields received on our cash deposits.
Previous report
Income Tax Expense
Reworded paragraphs (42)
Previous wording
ADC Therapeutics is a commercial-stage global pioneer in the field of antibody drug conjugates (“ADCs”), transforming treatment for patients through our focused portfolio with ZYNLONTA® (loncastuximab tesirine-lpyl), a CD19-directed ADC. ZYNLONTA received accelerated approval from the U.S. Food and Drug Administration (“FDA”), conditional approval from the European Commission, the China National Medical Products Administration (“NMPA”) and Health Canada, as well as approvals in other key global markets for the treatment of relapsed or refractory diffuse large B-cell lymphoma (“DLBCL”) after two or more lines of systemic therapy. Our goal is to be a leading ADC company bringing meaningful therapies to patients in need by leveraging our decade-long experience in the ADC field, with multiple INDs, and a proven track record of success. We are pursing expansion of ZYNLONTA internationally, and into earlier lines of DLBCL through our LOTIS-5 confirmatory Phase 3 clinical trial (rituximab combination) and LOTIS-7 Phase 1b clinical trial (bispecific combination) as well as into indolent lymphomas, including marginal zone lymphoma (“MZL”) and follicular lymphoma (”FL”), through investigator-initiated trials (“IITs”) at leading institutions.
Current wording
ADC Therapeutics is a commercial-stage global pioneer in the field of antibody drug conjugates (“ADCs”), transforming treatment for patients through our focused portfolio with ZYNLONTA® (loncastuximab tesirine-lpyl), a CD19-directed ADC. ZYNLONTA received accelerated approval from the U.S. Food and Drug Administration (“FDA”), conditional approval from the European Commission, the China National Medical Products Administration (“NMPA”) and Health Canada, as well as approvals in other key global markets for the treatment of relapsed or refractory diffuse large B-cell lymphoma (“DLBCL”) after two or more lines of systemic therapy. Our goal is to be a leading ADC company bringing meaningful therapies to patients in need by leveraging our decade-long experience in the ADC field, with multiple INDs, and a proven track record of success. We are pursuing expansion of ZYNLONTA internationally, and into earlier lines of DLBCL and indolent lymphomas, including marginal zone lymphoma (“MZL”) and follicular lymphoma (“FL”), as a single agent and in combination through our ZYNLONTA clinical program as well as through investigator-initiated trials (“IITs”) at leading institutions.
Previous wording
On June 24, 2026, we announced a strategic reorganization to focus resources behind key value-driving initiatives in support of ZYNLONTA. As part of the reorganization, we are reducing our global workforce by approximately 17%, which is expected to be substantially completed by September 30, 2026 (“2026 Restructuring”). The reduction is driven by the expected completion of the LOTIS-5 and LOTIS-7 trials this year, as well as operational efficiencies. To ensure continuity during this transition, on June 30, 2026, our Board of Directors, with the advice of its independent compensation consultant, approved a one-time retention award to certain of our employees, including our named executive officers.
Current wording
On June 24, 2026, we announced a strategic reorganization to focus resources behind key value-driving initiatives in support of ZYNLONTA and reduced our global workforce by 17% (“2026 Restructuring”). The reduction was driven by the expected completion of the LOTIS-5 and LOTIS-7 trials this year, as well as operational efficiencies. The 2026 Restructuring was complete as of September 30, 2026. To ensure continuity during this transition, on June 30, 2026, our Board of Directors, with the advice of its independent compensation consultant, approved a one-time retention award to certain of our employees, including our named executive officers.
Previous wording
Product revenues, net, were $38.7 million for the six months ended June 30, 2026 as compared to $35.5 million for the six months ended June 30, 2025, an increase of $3.2 million, or 9.0%. The increase is primarily attributable to higher sales volume and a higher price.
Current wording
Product revenues, net, were $21.0 million for the three months ended September 30, 2026 as compared to $15.8 million for the three months ended September 30, 2025, an increase of $5.3 million, or 33.4%. The increase is primarily attributable to higher sales volume.
Previous wording
Cost of product sales were $2.3 million for the three months ended June 30, 2026 as compared to cost of product sales of $0.8 million for the three months ended June 30, 2025, an increase of $1.5 million, or 181.0%. The increase in cost of product sales was primarily attributable to a $1.1 million increase in certain personnel costs, reflecting a change in focus of these personnel from research and development clinical supply activities to commercial manufacturing activities. Cost of product sales was also higher due to higher stability and storage charges for the three months ended June 30, 2026.
Current wording
Cost of product sales were $2.0 million for the three months ended September 30, 2026 as compared to cost of product sales of $1.2 million for the three months ended September 30, 2025, an increase of $0.8 million, or 64.7%. The increase in cost of product sales was primarily attributable to a $1.2 million increase in certain personnel costs, reflecting a change in focus of these personnel from research and development clinical supply activities to commercial manufacturing activities, partially offset by a $0.4 million credit recognized in connection with final price negotiations with a vendor for a failed production batch from the first quarter of 2026.
Previous wording
We expect our research and development expense to decrease for fiscal year 2026, as compared to 2025, primarily driven by an expected reduction in spending on discontinued programs and our preclinical product candidates and research pipeline as a result of the 2025 Restructuring, as well as reduced spend on ZYNLONTA due to the timing, progress and stage of clinical trials. Thereafter, our research and development expense may fluctuate from period to period based on a number of factors, including the timing, progress and stage of clinical trials, costs associated with regulatory approval processes and manufacturing costs associated with commercialization activities prior to the receipt of regulatory approval.
Current wording
We expect our research and development expense to decrease for fiscal year 2026, as compared to 2025, primarily driven by an expected reduction in spending on discontinued programs and our preclinical product candidates and research pipeline as a result of the 2025 and 2026 Restructurings, as well as reduced spend on ZYNLONTA due to the timing, progress and stage of clinical trials. Thereafter, our research and development expense may fluctuate from period to period based on a number of factors, including the timing, progress and stage of clinical trials, costs associated with regulatory approval processes and manufacturing costs associated with commercialization activities prior to the receipt of regulatory approval.
Previous wording
Our R&D expenses were $17.4 million for the three months ended June 30, 2026 as compared to $30.1 million for the three months ended June 30, 2025, a decrease of $12.7 million, or 42.3%.
Current wording
Our R&D expenses were $14.7 million for the three months ended September 30, 2026 as compared to $26.8 million for the three months ended September 30, 2025, a decrease of $12.1 million, or 45.0%.
Previous wording
The decrease in external costs and overhead of $10.2 million was driven primarily by discontinued programs and our preclinical product candidates and research pipeline as a result of the 2025 Restructuring, completion of IND-enabling activities for our PSMA-targeting ADC, as well as a decrease in ZYNLONTA spend due to the timing and enrollment of our ZYNLONTA clinical trials and related costs incurred in connection with the LOTIS-5 and LOTIS-7 trials.
Current wording
The decrease in external costs and overhead of $10.1 million was driven primarily by discontinued programs and our preclinical product candidates and research pipeline as a result of the 2025 Restructuring, completion of IND-enabling activities for our PSMA-targeting ADC, as well as a decrease in ZYNLONTA spend due to the timing and enrollment of our ZYNLONTA clinical trials and related costs incurred in connection with the LOTIS-5 and LOTIS-7 trials.
Previous wording
The changes in employee and share-based compensation expenses were primarily driven by lower wages and benefits of $2.8 million resulting from the 2025 Restructuring, partially offset by higher temporary project help of $0.6 million. Additionally, we had a $1.7 million shift in personnel costs (including $0.4 million in share-based compensation expense) to cost of product sales ($1.1 million), inventory capitalization ($0.5 million) and selling and marketing expense ($0.1 million), reflecting a change in focus of these personnel from research and development activities to commercial manufacturing and fulfillment activities. These decreases were partially offset by higher share-based compensation expense due to the timing of forfeitures of awards in connection with employee terminations and higher grant date fair values of RSU awards issued during the year, driven by both an increased number of awards and stock price appreciation at the time of grant.
Current wording
The changes in employee and share-based compensation expenses were primarily driven by lower wages and benefits of $2.8 million resulting from the 2025 Restructuring and the 2026 Restructuring. This decrease was partially offset by higher cash-based retention awards of $1.4 million and $0.7 million in higher temporary project help. Additionally, we had a $1.7 million shift in personnel costs (including $0.3 million in share-based compensation expense) to cost of product sales ($1.0 million), inventory capitalization ($0.5 million) and selling and marketing expense ($0.2 million), reflecting a change in focus of these personnel from research and development activities to commercial manufacturing and fulfillment activities. These decreases were partially offset by higher share-based compensation expense for one-time RSU retention awards granted during the year and higher grant date fair values for annual RSU awards.
Previous wording
Selling and marketing expenses were $12.6 million for the three months ended June 30, 2026 as compared to $10.1 million for the three months ended June 30, 2025, an increase of $2.4 million, or 23.9%. The increase in external costs and overhead of $1.7 million was primarily attributable to higher spend on marketing and advertising expenses. The increase in employee and share-based compensation expenses were due to a $0.1 million increase in certain personnel costs, reflecting an increase in commercial fulfillment activities. The increase in share-based compensation expense was also driven by higher grant date fair values of RSU awards issued during the year, driven by both an increased number of awards and stock price appreciation at the time of grant.
Current wording
Selling and marketing expenses were $8.7 million for the three months ended September 30, 2026 as compared to $10.7 million for the three months ended September 30, 2025, a decrease of $2.0 million, or 18.8%. The decrease in external costs and overhead of $2.5 million was primarily attributable to lower spend on marketing and advertising expenses. The increase in employee and share-based compensation expenses were due to a $0.2 million increase in certain personnel costs, reflecting an increase in commercial fulfillment activities. The increase in employee expenses reflects $0.6 million in higher cash-based retention and incentive awards, offset by $0.5 million in lower wages and benefits. The increase in share-based compensation expense was also driven by RSU retention awards granted during the year and higher grant date fair values for annual RSU awards.
Previous wording
General and administrative expenses were $9.7 million for the three months ended June 30, 2026 as compared to $8.8 million for the three months ended June 30, 2025, an increase of $0.9 million, or 10.0%. The increase in external costs and overhead of $0.9 million was primarily related to higher legal expenses of $0.5 million and higher IT expenses of $0.3 million. The decrease in employee expenses of $0.9 million was primarily due to lower wages and benefits. The increase in share-based compensation expense of $0.9 million was primarily due to higher grant date fair values of RSU awards issued during the year, driven by both an increased number of awards and stock price appreciation at the time of grant.
Current wording
General and administrative expenses were $10.7 million for the three months ended September 30, 2026 as compared to $8.3 million for the three months ended September 30, 2025, an increase of $2.4 million, or 28.9%. The increase in external costs and overhead of $0.3 million was primarily related to higher legal expenses. The increase in employee expenses of $0.9 million was primarily driven by higher cash-based retention awards. The increase in share-based compensation expense of $1.2 million was primarily driven by RSU retention awards granted during the year and higher grant date fair values for annual RSU awards.
Previous wording
In connection with the 2026 Restructuring, we incurred Restructuring, impairment, and other related costs of $2.7 million for the six months ended June 30, 2026, which consisted of severance and related benefit costs. We expect to pay the majority of the 2026 restructuring costs by the third quarter of 2026. In connection with the 2025 Restructuring, we incurred Restructuring, impairment, and other related costs of $13.1 million for the six months ended June 30, 2025, which consisted of $6.7 million in severance and related benefit costs and $6.4 million in impairment of long-lived assets and prepaid expenses. The 2025 Restructuring was complete as of June 30, 2026.
Current wording
In connection with the 2026 Restructuring, we incurred a reversal to Restructuring, impairment, and other related costs of $0.1 million for the three months ended September 30, 2026, which related to adjustments in the severance and related benefit cost estimates previously recognized. The 2026 Restructuring was complete as of September 30, 2026. In connection with the 2025 Restructuring, we incurred Restructuring, impairment, and other related costs of $0.4 million for the three months ended September 30, 2025, which consisted of $0.8 million for the estimated fair value of retirement costs associated with the U.K. lease agreements, partially offset by $0.5 million in adjustments related to severance and related benefit costs. The 2025 Restructuring was complete as of June 30, 2026.
Previous wording
Interest income was $1.8 million for the three months ended June 30, 2026 as compared to $1.9 million for the three months ended June 30, 2025, a decrease of $0.1 million, or 5.9%. The decrease was primarily due to lower yields received on our cash deposits and lower average cash balances.
Current wording
Interest income was $1.6 million for the three months ended September 30, 2026 as compared to $2.5 million for the three months ended September 30, 2025, a decrease of $0.9 million, or 34.5%. The decrease was primarily due to our lower average cash balances.
Previous wording
Interest expense is primarily related to the accretion of our deferred royalty obligation with HCR and the senior secured term loan facility. Interest expense was $13.5 million for the three months ended June 30, 2026 as compared to $13.0 million for the three months ended June 30, 2025, an increase of $0.5 million, or 3.9%. The increase was primarily related to higher accretion of our deferred royalty obligation with HCR as a result of higher total revenue, net, as well as a higher effective interest rate as a result of the HCR Amendment.
Current wording
Interest expense is primarily related to the accretion of our deferred royalty obligation with HCR and the senior secured term loan facility. Interest expense was $13.7 million for the three months ended September 30, 2026 as compared to $13.4 million for the three months ended September 30, 2025, an increase of $0.3 million, or 2.5%. The increase was primarily related to higher accretion of our deferred royalty obligation with HCR as a result of higher total revenue, net, as well as a higher effective interest rate as a result of the HCR Amendment.
Previous wording
On February 18, 2026, we entered into an amendment (the “HCR Amendment”) to the Purchase and Sale Agreement, dated August 25, 2021 (the “Original HCR Agreement” and, as amended by the HCR Amendment, the “Amended HCR Agreement”). In connection with the HCR Amendment, the Company issued to HCR warrants to purchase 9,834,776 common shares. The HCR warrant obligation has been recorded at its initial fair value at the time the agreement was entered into on February 18, 2026 and is remeasured to fair value at the end of each reporting period. The fair value of the warrant obligation as of June 30, 2026 was $4.2 million. The income of $14.4 million for the three months ended June 30, 2026 was primarily due to the decrease in fair value of the underlying shares during the respective period.
Current wording
On February 18, 2026, we entered into an amendment (the “First HCR Amendment”) to the Purchase and Sale Agreement, dated August 25, 2021. In connection with the First HCR Amendment, the Company issued to HCR warrants to purchase 9,834,776 common shares. The HCR warrant obligation has been recorded at its initial fair value at the time the agreement was entered into on February 18, 2026 and is remeasured to fair value at the end of each reporting period. The fair value of the warrant obligation as of September 30, 2026 was $5.4 million. The expense of $1.2 million for the three months ended September 30, 2026 was primarily due to the increase in fair value of the underlying shares during the respective period.
Previous wording
We periodically assess the expected payments to HCR based on our underlying revenue projections and to the extent the amount or timing of such payments is materially different than our initial estimates we will record a cumulative catch-up adjustment to the deferred royalty obligation. The adjustment to the carrying amount is recognized in Other, net as an adjustment in the period in which the change in estimate occurred. The cumulative catch-up adjustment income was $6.3 million for the three months ended June 30, 2026 as compared to $0.2 million for the three months ended June 30, 2025, a change of $6.1 million. The change was primarily due to revised revenue forecasts incorporated into the valuation model in 2026, as a result of changes in assumptions in the Company’s updated strategic and development plans.
Current wording
We periodically assess the expected payments to HCR based on our underlying revenue projections and to the extent the amount or timing of such payments is materially different than our initial estimates we will record a cumulative catch-up adjustment to the deferred royalty obligation. The adjustment to the carrying amount is recognized in Other, net as an adjustment in the period in which the change in estimate occurred. The cumulative catch-up adjustment income was $2.5 million for the three months ended September 30, 2026 as compared to $0.3 million for the three months ended September 30, 2025, a change of $2.2 million. The change was primarily due to revised revenue forecasts incorporated into the valuation model in 2026, as a result of changes in assumptions in the Company’s updated strategic and development plans.
Previous wording
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current wording
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2026 and 2025:
Previous wording
Product revenues, net, were $18.6 million for the three months ended June 30, 2026 as compared to $18.1 million for the three months ended June 30, 2025, an increase of $0.5 million, or 3.0%. The increase is primarily attributable to a higher price. Sales volume was consistent on a period over period basis.
Current wording
Product revenues, net, were $59.7 million for the nine months ended September 30, 2026 as compared to $51.2 million for the nine months ended September 30, 2025, an increase of $8.4 million, or 16.5%. The increase is primarily attributable to higher sales volume.
Previous wording
We generate license revenue and royalties from our strategic agreements for the development and commercialization of ZYNLONTA outside of the United States. Under these agreements, we receive upfront payments and are eligible for certain milestone payments and royalties. See “Item 1. Business—Material Contracts” in our Annual Report on Form 10-K. We are unable to predict the timing and amounts of license revenue and royalties as meeting milestones is subject to many factors outside of our control and we have limited control over our partners’ commercialization efforts.
Current wording
We generate license revenue and royalties from our strategic agreements for the development and commercialization of ZYNLONTA outside of the United States. Under these agreements, we receive upfront payments and are eligible for certain milestone payments and royalties. See “Item 1. Business—Material Contracts” in our Annual Report on Form 10-K.
Previous wording
License revenues and royalties were $1.4 million for the six months ended June 30, 2026 as compared to $6.4 million for the six months ended June 30, 2025. The decrease was driven by a one-time $5.0 million milestone recognized during the prior year. We received the $5.0 million milestone in connection with the conditional approval by Health Canada for the treatment of relapsed or refractory DLBCL after two or more lines of systemic therapy under our exclusive license agreement with Sobi.
Current wording
License revenues and royalties were $2.1 million for the nine months ended September 30, 2026 as compared to $7.1 million for the nine months ended September 30, 2025. The decrease was driven by a one-time $5.0 million milestone recognized during the prior year. We received the $5.0 million milestone in connection with the conditional approval by Health Canada for the treatment of relapsed or refractory DLBCL after two or more lines of systemic therapy under our exclusive license agreement with Sobi.
Previous wording
Cost of product sales were $6.0 million for the six months ended June 30, 2026 as compared to cost of product sales of $2.9 million for the six months ended June 30, 2025, an increase of $3.1 million, or 105.9%. The increase in cost of product sales was primarily attributable to a $2.5 million increase in certain personnel costs, reflecting a change in focus of these personnel from research and development clinical supply activities to commercial manufacturing activities. Cost of product sales was also higher due to higher stability, shipping and storage charges for the six months ended June 30, 2026.
Current wording
Cost of product sales were $7.9 million for the nine months ended September 30, 2026 as compared to cost of product sales of $4.1 million for the nine months ended September 30, 2025, an increase of $3.8 million, or 93.8%. The increase in cost of product sales was primarily attributable to a $3.7 million increase in certain personnel costs, reflecting a change in focus of these personnel from research and development clinical supply activities to commercial manufacturing activities, as well as higher stability, shipping and storage charges of $0.6 million, partially offset by a $0.4 million credit recognized in connection with final price negotiations with a vendor for a failed production batch from the first quarter of 2026.
Previous wording
The following table summarizes our research and development expenses for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our research and development expenses for the nine months ended September 30, 2026 and 2025:
Previous wording
We expect our research and development expense to decrease for fiscal year 2026, as compared to 2025, primarily driven by an expected reduction in spending on discontinued programs and our preclinical product candidates and research pipeline as a result of the 2025 Restructuring, as well as reduced spend on ZYNLONTA due to the timing, progress and stage of clinical trials. Thereafter, our research and development expense may fluctuate from period to period based on a number of factors, including the timing, progress and stage of clinical trials, costs associated with regulatory approval processes and manufacturing costs associated with commercialization activities prior to the receipt of regulatory approval.
Current wording
We expect our research and development expense to decrease for fiscal year 2026, as compared to 2025, primarily driven by an expected reduction in spending on discontinued programs and our preclinical product candidates and research pipeline as a result of the 2026 Restructuring and the 2025 Restructuring, as well as reduced spend on ZYNLONTA due to the timing, progress and stage of clinical trials. Thereafter, our research and development expense may fluctuate from period to period based on a number of factors, including the timing, progress and stage of clinical trials, costs associated with regulatory approval processes and manufacturing costs associated with commercialization activities prior to the receipt of regulatory approval.
Previous wording
Our R&D expenses were $37.2 million for the six months ended June 30, 2026 as compared to $59.0 million for the six months ended June 30, 2025, a decrease of $21.8 million, or 36.9%.
Current wording
Our R&D expenses were $52.0 million for the nine months ended September 30, 2026 as compared to $85.8 million for the nine months ended September 30, 2025, a decrease of $33.8 million, or 39.4%.
Previous wording
The decrease in external costs and overhead of $16.3 million was driven primarily by discontinued programs and our preclinical product candidates and research pipeline as a result of the 2025 Restructuring and completion of IND-enabling activities for our PSMA-targeting ADC.
Current wording
The decrease in external costs and overhead of $26.4 million was driven primarily by discontinued programs and our preclinical product candidates and research pipeline as a result of the 2025 Restructuring, completion of IND-enabling activities for our PSMA-targeting ADC, as well as a decrease in ZYNLONTA spend due to the timing and enrollment of our ZYNLONTA clinical trials and related costs incurred in connection with the LOTIS-5 and LOTIS-7 trials
Previous wording
The changes in employee and share-based compensation expenses were primarily driven by lower wages and benefits of $5.2 million resulting from the 2025 Restructuring, partially offset by higher temporary project help of $1.9 million. Additionally, we had a $3.8 million shift in personnel costs (including $0.7 million in share-based compensation expense) to cost of product sales ($2.3 million), inventory capitalization ($1.1 million) and selling and marketing expense ($0.4 million), reflecting a change in focus of these personnel from research and development activities to commercial manufacturing and fulfillment activities. These decreases were partially offset by higher share-based compensation expense due to the timing of forfeitures of awards in connection with employee terminations and higher grant date fair values of RSU awards issued during the year, driven by both an increased number of awards and stock price appreciation at the time of grant.
Current wording
The changes in employee and share-based compensation expenses were primarily driven by lower wages and benefits of $7.4 million resulting from the 2025 Restructuring and the 2026 Restructuring. This decrease was partially offset by higher cash-based retention awards of $1.3 million and $2.7 million in higher temporary project help. Additionally, we had a $5.5 million shift in personnel costs (including $0.7 million in share-based compensation expense) to cost of product sales ($3.3 million), inventory capitalization ($1.6 million) and selling and marketing expense ($0.6 million), reflecting a change in focus of these personnel from research and development activities to commercial manufacturing and fulfillment activities. These decreases were partially offset by higher share-based compensation expense for RSU retention awards granted during the year and higher grant date fair values for annual RSU awards.
Previous wording
The following table summarizes our selling and marketing expenses for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our selling and marketing expenses for the nine months ended September 30, 2026 and 2025:
Previous wording
Selling and marketing expenses were $25.3 million for the six months ended June 30, 2026 as compared to $20.7 million for the six months ended June 30, 2025, an increase of $4.6 million, or 22.1%. The increase in external costs and overhead of $2.4 million was primarily attributable to higher spend on marketing and advertising expenses, training initiatives and related travel costs. The increase in employee and share-based compensation expenses were primarily due to an increase in wages and benefits of $0.8 million and a $0.4 million increase in certain personnel costs, reflecting an increase in commercial fulfillment activities. The increase in share-based compensation expense was also driven by higher grant date fair values of RSU awards issued during the year, driven by both an increased number of awards and stock price appreciation at the time of grant.
Current wording
Selling and marketing expenses were $34.0 million for the nine months ended September 30, 2026 as compared to $31.4 million for the nine months ended September 30, 2025, an increase of $2.6 million, or 8.2%. The increase in employee and share-based compensation expenses were primarily due to $0.8 million in higher cash-based retention and incentive awards and a $0.6 million increase in certain personnel costs, reflecting an increase in commercial fulfillment activities. The increase in share-based compensation expense was also driven by RSU retention awards granted during the year and higher grant date fair values for annual RSU awards.
Previous wording
The following table summarizes our general and administrative expenses for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our general and administrative expenses for the nine months ended September 30, 2026 and 2025:
Previous wording
General and administrative expenses were $19.6 million for the six months ended June 30, 2026 as compared to $18.8 million for the six months ended June 30, 2025, an increase of $0.8 million, or 4.4%. The increase in external costs and overhead of $1.4 million was primarily related to higher IT expenses of $0.6 million, a one-time VAT recovery of $0.5 million recognized in the prior year and $0.3 million in higher legal expenses. The decrease in employee expenses of $1.8 million was primarily due to lower wages and benefits of $1.6 million and lower temporary project help of $0.2 million. The increase in share-based compensation expense of $1.2 million was primarily due to higher grant date fair values of RSU awards issued during the year, driven by both an increased number of awards and stock price appreciation at the time of grant.
Current wording
General and administrative expenses were $30.3 million for the nine months ended September 30, 2026 as compared to $27.1 million for the nine months ended September 30, 2025, an increase of $3.2 million, or 11.9%. The increase in external costs and overhead of $1.6 million was primarily related to $0.6 million in higher legal expenses, higher IT expenses of $0.6 million and a one-time VAT recovery of $0.5 million recognized in the prior year. The decrease in employee expenses of $0.8 million was primarily due to lower wages and benefits of $1.2 million and lower temporary project help of $0.3 million, partially offset by $0.7 million in higher cash-based retention awards. The increase in share-based compensation expense of $2.4 million was primarily due to RSU retention awards granted during the year and higher grant date fair values for annual RSU awards.
Previous wording
In connection with the 2026 Restructuring, we incurred Restructuring, impairment, and other related costs of $2.7 million for the three months ended June 30, 2026, which consisted of severance and related benefit costs. We expect to pay the majority of the 2026 restructuring costs by the third quarter of 2026. In connection with the 2025 Restructuring, we incurred Restructuring, impairment, and other related costs of $13.1 million for the three months ended June 30, 2025, which consisted of $6.7 million in severance and related benefit costs and $6.4 million in impairment of long-lived assets and prepaid expenses. The 2025 Restructuring was complete as of June 30, 2026.
Current wording
In connection with the 2026 Restructuring, we incurred Restructuring, impairment, and other related costs of $2.6 million for the nine months ended September 30, 2026, which consisted of severance and related benefit costs. The 2026 Restructuring was complete as of September 30, 2026. In connection with the 2025 Restructuring, we incurred Restructuring, impairment, and other related costs of $13.5 million for the nine months ended September 30, 2025, which consisted of $6.2 million in severance and related benefit costs, $6.4 million in impairment of long-lived assets and prepaid expenses, and $0.8 million for the estimated fair value of retirement costs associated with the U.K. lease agreement. The 2025 Restructuring was complete as of June 30, 2026.
Previous wording
Interest expense is primarily related to the accretion of our deferred royalty obligation with HCR and the senior secured term loan facility. Interest expense was $25.9 million for the six months ended June 30, 2026 as compared to $25.2 million for the six months ended June 30, 2025, an increase of $0.6 million, or 2.5%. The increase was primarily related to higher accretion of our deferred royalty obligation with HCR as a result of higher total revenue, net, as well as a higher effective interest rate as a result of the HCR Amendment.
Current wording
Interest expense is primarily related to the accretion of our deferred royalty obligation with HCR and the senior secured term loan facility. Interest expense was $39.6 million for the nine months ended September 30, 2026 as compared to $38.6 million for the nine months ended September 30, 2025, an increase of $1.0 million, or 2.5%. The increase was primarily related to higher accretion of our deferred royalty obligation with HCR as a result of higher total revenue, net, as well as a higher effective interest rate as a result of the First HCR Amendment.
Previous wording
On February 18, 2026, we entered into an amendment (the “HCR Amendment”) to the Purchase and Sale Agreement, dated August 25, 2021 (the “Original HCR Agreement” and, as amended by the HCR Amendment, the “Amended HCR Agreement”). In connection with the HCR Amendment, the Company issued to HCR warrants to purchase 9,834,776 common shares. The HCR warrant obligation has been recorded at its initial fair value at the time the agreement was entered into on February 18, 2026 and is remeasured to fair value at the end of each reporting period. The fair value of the warrant obligation as of June 30, 2026 was $4.2 million. The income of $16.6 million for the six months ended June 30, 2026 was primarily due to the decrease in fair value of the underlying shares during the respective period.
Current wording
On February 18, 2026, we entered into the First HCR Amendment. In connection with the First HCR Amendment, the Company issued to HCR warrants to purchase 9,834,776 common shares. The HCR warrant obligation has been recorded at its initial fair value at the time the agreement was entered into on February 18, 2026 and is remeasured to fair value at the end of each reporting period. The fair value of the warrant obligation as of September 30, 2026 was $5.4 million. The income of $15.4 million for the nine months ended September 30, 2026 was primarily due to the decrease in fair value of the underlying shares during the respective period.
Previous wording
We periodically assess the expected payments to HCR based on our underlying revenue projections and to the extent the amount or timing of such payments is materially different than our initial estimates we will record a cumulative catch-up adjustment to the deferred royalty obligation. The adjustment to the carrying amount is recognized in Other, net as an adjustment in the period in which the change in estimate occurred. The cumulative catch-up adjustment income was $6.4 million for the six months ended June 30, 2026 as compared to $0.2 million for the six months ended June 30, 2025, a change of $6.2 million. The change was primarily due to revised revenue forecasts incorporated into the valuation model in 2026, as a result of changes in assumptions in the Company’s updated strategic and development plans.
Current wording
We periodically assess the expected payments to HCR based on our underlying revenue projections and to the extent the amount or timing of such payments is materially different than our initial estimates we will record a cumulative catch-up adjustment to the deferred royalty obligation. The adjustment to the carrying amount is recognized in Other, net as an adjustment in the period in which the change in estimate occurred. The cumulative catch-up adjustment income was $8.9 million for the nine months ended September 30, 2026 as compared to $0.5 million for the nine months ended September 30, 2025, a change of $8.4 million. The change was primarily due to revised revenue forecasts incorporated into the valuation model in 2026, as a result of changes in assumptions in the Company’s updated strategic and development plans.
Previous wording
We are subject to corporate taxation in Switzerland and in other jurisdictions in which we operate, including the United States and the United Kingdom, where our two wholly-owned subsidiaries are incorporated. Under Swiss law, we are permitted to carry forward net operating losses for up toseven years, which may be used to offset future taxable income. Under U.S. tax law, research and development tax credits may generally be carried forward for up to 20 years and used to offset future tax liabilities, subject to statutory requirements. We recorded an income tax expense of nil for the six months ended June 30, 2026 as compared to $1.4 million for the six months ended June 30, 2025, primarily driven by a tax adjustment in our UK operations recorded in the comparable prior period as a result of the 2025 Restructuring.
Current wording
We are subject to corporate taxation in Switzerland and in other jurisdictions in which we operate, including the United States and the United Kingdom, where our two wholly-owned subsidiaries are incorporated. Under Swiss law, we are permitted to carry forward net operating losses for up toseven years, which may be used to offset future taxable income. Under U.S. tax law, research and development tax credits may generally be carried forward for up to 20 years and used to offset future tax liabilities, subject to statutory requirements. We recorded an income tax expense of nil for the nine months ended September 30, 2026 as compared to $1.4 million for the nine months ended September 30, 2025, primarily driven by a tax adjustment in our UK operations recorded in the comparable prior period as a result of the 2025 Restructuring.
Previous wording
As of June 30, 2026, we had cash and cash equivalents of $219.1 million and believe that our current cash position and capital resources are sufficient to fund our operation and meet capital requirements for at least the next twelve months from the date of this report.
Current wording
As of September 30, 2026, we had cash and cash equivalents of $189.2 million and believe that our current cash position and capital resources are sufficient to fund our operation and meet capital requirements for at least the next twelve months from the date of this report.
Previous wording
To date, we have financed our operations primarily through equity financings, convertible debt and senior secured term loan financings, and additional funds provided by collaborations and royalty financings and sales of ZYNLONTA in the United States. For a description of the Loan Agreement, Amended HCR Agreement and other license and collaboration agreements, see “Item 1. Business - Material Contracts” in our Annual Report.
Current wording
To date, we have financed our operations primarily through equity financings, convertible debt and senior secured term loan financings, and additional funds provided by collaborations and royalty financings and sales of ZYNLONTA in the United States.
Previous wording
The following table summarizes our cash flows for the six months ended June 30, 2026 and 2025:
Current wording
The following table summarizes our cash flows for the nine months ended September 30, 2026 and 2025:
Previous wording
Net cash used in operating activities was $41.5 million for the six months ended June 30, 2026 as compared to $80.4 million for the six months ended June 30, 2025, a decrease of $38.9 million. The decrease was primarily due to the prior year payment of the 2023 discarded drug rebate of $7.2 million, a $10.6 million period over period increase in the collection of accounts receivable and overall reduction in net loss and operating costs in connection with the 2025 Restructuring Plan, partially offset by the $5 million SOBI milestone received in prior year in connection with ZYNLONTA’s conditional approval by Health Canada for the treatment of relapsed or refractory DLBCL after two or more lines of systemic therapy.
Current wording
Net cash used in operating activities was $69.4 million for the nine months ended September 30, 2026 as compared to $110.1 million for the nine months ended September 30, 2025, a decrease of $40.7 million. The decrease was primarily due to the prior year payment of the 2023 discarded drug rebate of $7.2 million, a $10.8 million period over period increase in the collection of accounts receivable and overall reduction in net loss and operating costs in connection with the 2025 and 2026 Restructuring Plans, partially offset by $10.9 million in cash-based retention awards paid during the year and the $5 million SOBI milestone received in prior year in connection with ZYNLONTA’s conditional approval by Health Canada for the treatment of relapsed or refractory DLBCL after two or more lines of systemic therapy.
Previous wording
Net cash used in investing activities was less than $0.1 million for the six months ended June 30, 2026 as compared to $0.3 million for the six months ended June 30, 2025, a decrease of $0.2 million. The decrease in net cash used in investing activities relates to timing of purchases of property and equipment.
Current wording
Net cash used in investing activities was less than $0.1 million for the nine months ended September 30, 2026 as compared to $0.3 million for the nine months ended September 30, 2025, a decrease of $0.2 million. The decrease in net cash used in investing activities relates to timing of purchases of property and equipment.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We are unable to predict the timing and amounts of license revenue and royalties as meeting milestones is subject to many factors outside of our control and we have limited control over our partners’ commercialization efforts.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Phase 2 Investigator Initiated Trials (IITs) Update
Previous report — wording carried elsewhere
We are subject to corporate income taxation in Switzerland and in other jurisdictions in which we operate, including the United States and the United Kingdom, where our two wholly-owned subsidiaries are incorporated. Under Swiss law, we are permitted to carry forward net operating losses for up toseven years, which may be used to offset future taxable income. Under U.S. tax law, research and development tax credits may generally be carried forward for up to 20 years and used to offset future tax liabilities, subject to statutory requirements. We recorded an income tax expense of nil for the three months ended June 30, 2026 as compared to $1.3 million for the three months ended June 30, 2025, primarily driven by a tax adjustment in our UK operations recorded in the comparable prior period as a result of the 2025 Restructuring.