ADC Therapeutics Regains Compliance with NYSE Continued Listing Standards

Rhea-AI Summary

ADC Therapeutics SA (ADCT) regains compliance with NYSE listing minimum price criteria, averting potential delisting. The company's common shares closed above $1.00, resolving the previous noncompliance issue.

Insights

Financial Analyst

The announcement by ADC Therapeutics SA about regaining compliance with the NYSE's continued listing minimum price criteria is a significant financial development. This compliance lifts the immediate threat of delisting which can have severe liquidity implications. Delisting typically reduces a stock's visibility to investors and can lead to decreased trading volumes and investor exit, further driving down the share price.

For existing and potential investors, the news is likely to restore some confidence in the company's financial stability and governance. It may also positively influence the stock's attractiveness to institutional investors, who may have mandates that prevent them from holding stocks not listed on a major exchange.

From a financial perspective, the company's ability to maintain a share price above the $1 threshold is indicative of improved market sentiment or operational progress. However, investors should monitor the company's fundamentals to ensure that the price recovery is sustainable and not merely a result of short-term trading volatility or speculative interest.

Market Research Analyst

The biotechnology sector, where ADC Therapeutics SA operates, is highly sensitive to regulatory and compliance news. The regaining of compliance with NYSE's listing criteria can be seen as a proxy for the company's overall health and market confidence. It's essential to contextualize this event within the broader market dynamics and investor sentiment towards the biotech industry.

Investors often view compliance with major exchange listing standards as a baseline for investment quality. The company's return to compliance may lead to a re-evaluation of its market position against its peers. Analysts and investors may now be more inclined to focus on the company's pipeline, management decisions and financial health in upcoming quarters.

It is also worth considering the timing of this compliance in relation to industry cycles and investment trends. If the biotech sector is on an upward trend, ADC Therapeutics SA's regained compliance could coincide with broader market growth, potentially amplifying positive investor sentiment.

Legal Expert

Meeting the NYSE's continued listing minimum price criteria is not only a financial requirement but also a compliance issue that carries legal implications. The compliance notice signifies that ADC Therapeutics SA has navigated the regulatory framework successfully, avoiding the legal and administrative complexities of a delisting process.

Investors should be aware that such compliance issues are monitored closely by regulatory bodies and that adherence to these rules is indicative of a company's legal diligence. It is also a reflection of the company's internal controls and risk management processes. For stakeholders, this development may suggest that the company is taking proactive steps to ensure that it meets all necessary legal and regulatory requirements, which is critical for maintaining corporate integrity and shareholder trust.

LAUSANNE, Switzerland, Jan. 04, 2024 (GLOBE NEWSWIRE) -- ADC Therapeutics SA (NYSE: ADCT) today announced that it received a notice from the New York Stock Exchange (NYSE) on January 2, 2024 that the Company has regained compliance with the continued listing minimum price criteria set forth in Section 802.01C of the NYSE Listed Company Manual and, as a result, will be removed from the NYSE’s noncompliant issuers list. The Company previously received a notice from the NYSE that it was not in compliance with the continued listing minimum price criteria, as the average closing price of its common shares was below $1.00 over a consecutive 30 trading-day period. As closing price of the common shares on December 29, 2023 and the average closing price of the common shares over the 30 trading-day period ending on December 29, 2023 were both above $1.00, the deficiency was cured.

About ADC Therapeutics

ADC Therapeutics (NYSE: ADCT) is a commercial-stage global leader and pioneer in the field of antibody drug conjugates (ADCs). The Company is advancing its proprietary ADC technology to transform the treatment paradigm for patients with hematologic malignancies and solid tumors.

ADC Therapeutics’ CD19-directed ADC ZYNLONTA (loncastuximab tesirine-lpyl) received accelerated approval by the FDA and conditional approval from the European Commission for the treatment of relapsed or refractory diffuse large B-cell lymphoma after two or more lines of systemic therapy. ZYNLONTA is also in development in combination with other agents and in earlier lines of therapy. In addition to ZYNLONTA, ADC Therapeutics has multiple ADCs in ongoing clinical and preclinical development.

ADC Therapeutics is based in Lausanne (Biopôle), Switzerland and has operations in London, the San Francisco Bay Area and New Jersey. For more information, please visit https://adctherapeutics.com/ and follow the Company on LinkedIn.

ZYNLONTA^® is a registered trademark of ADC Therapeutics SA.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “would”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “seem”, “seek”, “future”, “continue”, or “appear” or the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to certain risks and uncertainties that can cause actual results to differ materially from those described. Factors that may cause such differences include, but are not limited to: the actual ZYNLONTA^® revenue for 4Q 2023, the success of the Company’s updated corporate strategy including operating efficiencies, capital deployment and portfolio prioritization; the Company’s ability to achieve the decrease in total operating expenses for 2023 and 2024, the expected cash runway into 4Q 2025, the effectiveness of the new commercial go-to-market strategy, competition from new technologies, and the Company’s ability to grow ZYNLONTA^® revenue in the United States; Swedish Orphan Biovitrum AB (Sobi^®) ability to successfully commercialize ZYNLONTA^® in the European Economic Area and market acceptance, adequate reimbursement coverage, and future revenue from the same; approval by the NMPA of the BLA for ZYNLONTA^® in China submitted by Overland ADCT BioPharma and future revenue from the same, our strategic partners’, including Mitsubishi Tanabe Pharma Corporation, ability to obtain regulatory approval for ZYNLONTA^® in foreign jurisdictions, and the timing and amount of future revenue and payments to us from such partnerships; the impact, if any, from data reported by the University of Miami for their IIT in FL; the timing and results of the Company’s or its partners’ clinical trials including LOTIS 5 and 7, ADCT 601 and 602 as well as the Company’s early-stage pipeline research projects, actions by the FDA or foreign regulatory authorities with respect to the Company’s products or product candidates; projected revenue and expenses; the Company’s indebtedness, including Healthcare Royalty Management and Oaktree and Blue Owl facilities, and the restrictions imposed on the Company’s activities by such indebtedness, the ability to repay such indebtedness and the significant cash required to service such indebtedness; and the Company’s ability to obtain financial and other resources for its research, development, clinical, and commercial activities. Additional information concerning these and other factors that may cause actual results to differ materially from those anticipated in the forward-looking statements is contained in the “Risk Factors” section of the Company's Annual Report on Form 20-F and in the Company's other periodic reports and filings with the Securities and Exchange Commission. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, achievements or prospects to be materially different from any future results, performance, achievements or prospects expressed in or implied by such forward-looking statements. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document. The Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this press release, except as required by law.

CONTACTS:

Investors
Eugenia Litz
ADC Therapeutics
Eugenia.Litz@adctherapeutics.com
+44 7879 627205
+1 908-723-2350

Media
Nicole Riley
ADC Therapeutics
Nicole.Riley@adctherapeutics.com 
+1 862-926-9040

FAQ

What did ADC Therapeutics SA (ADCT) announce regarding NYSE compliance?

ADC Therapeutics SA (ADCT) announced that it has regained compliance with the NYSE listing minimum price criteria, averting potential delisting.

When did ADC Therapeutics SA (ADCT) receive the notice from the NYSE?

ADC Therapeutics SA (ADCT) received the notice from the NYSE on January 2, 2024.

What was the reason for the previous noncompliance of ADC Therapeutics SA (ADCT)?

The previous noncompliance of ADC Therapeutics SA (ADCT) was due to the average closing price of its common shares being below $1.00 over a consecutive 30 trading-day period.

How did ADC Therapeutics SA (ADCT) resolve the noncompliance issue?

ADC Therapeutics SA (ADCT) resolved the noncompliance issue by having the closing price of its common shares on December 29, 2023, and the average closing price over the 30 trading-day period ending on December 29, 2023, both above $1.00.