ADC Therapeutics cuts 17% of staff after safety setback
ADC Therapeutics will cut about 17% of its global workforce as it tries to preserve cash and keep Zynlonta’s regulatory strategy on track after a difficult Phase III readout.
By the numbers: The Lausanne-based antibody-drug conjugate specialist said the reorganisation should generate about US$10m (€8.8m) in annualised savings. The company expects around US$3m (€2.6m) in one-time severance and related charges, mostly in the second quarter of 2026, and said its cash runway extends at least into 2028.
Why it matters: The cuts come a few weeks after the Phase III LOTIS-5 trial produced a mixed result for Zynlonta, ADC Therapeutics’ CD19-directed antibody-drug conjugate for relapsed or refractory diffuse large B-cell lymphoma.
The context: Zynlonta is already approved in the US and Europe for adults with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy. Its US approval is accelerated and its EU approval conditional, meaning continued approval may depend on confirmatory evidence of clinical benefit.
- LOTIS-5 was therefore central to Zynlonta’s attempt to support its existing approval and move earlier in the treatment sequence, potentially into second-line use for patients who are not suitable for, cannot access, or relapse after CAR-T and other complex therapies.
Zoom in: The LOTIS-5 study met its primary endpoint, showing that Zynlonta plus rituximab reduced the risk of disease progression or death by 27% versus rituximab plus gemcitabine and oxaliplatin. Median progression-free survival was 6.1 months in the Zynlonta arm, compared with 4.7 months in the control arm.
Yes, but: The efficacy signal was overshadowed by safety.
- In LOTIS-5, Grade 5 treatment-emergent adverse events – adverse events resulting in death – occurred in 27 patients, or 13.2%, in the Zynlonta-rituximab arm, compared with 9 patients, or 4.6%, in the R-GemOx control arm.
- Serious adverse events and treatment discontinuations were also higher in the Zynlonta arm.
- Overall survival was also nearly identical between the groups.
Between the lines: ADC Therapeutics said the workforce reduction is linked to the expected completion of LOTIS-5 and LOTIS-7 this year, as well as operational efficiencies. The company said it will keep its external medical affairs and commercial footprint to support Zynlonta.
What’s next: ADC Therapeutics is preparing for a pre-supplemental Biologics License Application meeting with the FDA in August 2026 to discuss a potential regulatory path for Zynlonta plus rituximab in relapsed or refractory diffuse large B-cell lymphoma (DLBCL). The company expects to submit an sBLA in the fourth quarter of 2026.
- It is also waiting on full data from LOTIS-7, a Phase Ib trial evaluating Zynlonta in combination with glofitamab in second-line and later DLBCL, by the end of 2026. ADC Therapeutics also plans to support investigator-initiated Phase II studies of Zynlonta in indolent lymphomas.
Investor pressure: ADC Therapeutics’ stock has fallen around 66% since the announcement of the Phase III result.
The bottom line: ADC Therapeutics had 188 full-time employees and five part-time staff at the end of 2025, meaning the 17% reduction could affect around 32 roles.
