ADC Therapeutics (ADCT) 9 May 232023 Q1 Earnings call transcript

Welcome to the ADC Therapeutics First Quarter 2023 Financial Results Conference Call. My name is Anton Alexander [ph], and I'll be your operator for today's call. At this time, all participants are in listen-only mode. Later, we will conduct a Q&A session. [Operator Instructions].

hand over to Investor Amanda like Manager. Relations now the to call Loshbaugh, I'd begin. may you Amanda,

Thank morning, and operator. website first release you, This available at quarter announcing press is Press XXXX our ir.adctherapeutics.com release under financial Releases the results on business the This we updates. ADCT issued section. a

highlights Zaki, first Officer, Ameet and Pepe Officer; XXXX Mallik, call, Kristen will today's before call Medical recent Executive Officer; opening our Harrington-Smith, for Chief Chief Financial and Chief financial results, On questions. Chief Commercial quarter discuss business Officer; review Mohamed the Carmona,

remind Before during that of XXXX. we Securities begin, contain meaning I would call provisions conference Safe of like forward-looking made Private to of statements the Reform within U.S. the listeners of Litigation the Act will statements some this Harbor the

combination outstanding our and statements achieve prescription products timing our restructuring development debt volume, our approval our partners and combination or include our share projections, regulatory through regulatory either clinical strategic in our growth, revenue our potential either partner results to of related ability strategy, either portfolio future capital those our and for our to as foreign long-term future and the future future efforts launches alone prioritization and cash products, ability products, our and and foreign field to business updated or as actions products, partnerships alone expenses, strategic and with authorities development obligations. with operating results, and strategic operating products, repay ongoing financial commercial in or plan, alone guidance programs for of partners, and FDA future product Examples of trials and market our well for forward-looking and our impact path and requirement revenue including forward, XXXX our allocation our for

SEC the uncertainties materially. described accompanying They ADCT's today's press risks results are subject in These is and certain the release, in on and Slide updated and company's Form on filings and statements X-K. X forward-looking and with XX-F identified are in Form in actual on the slide periodic to presentation could differ recent filings

ADCT the hereof, undue to forward-looking conference in as by undertake any except of statements, not required as today's circumstances this new date reliance this on otherwise. company these is forward-looking The investors or date does a place and obligation as update conference call information, contained any not of providing after result future to events, statements. law or information the cautions call, of

financial in as measures. measures should for financial and be prepared a limitations substitute IFRS. with information isolation not and or presentation also non-IFRS These includes as have the non-IFRS accordance measures considered Today's addition in to in

information in measures of and should measures. the IFRS the non-IFRS You financial definitional refer comparable contained the historical quarter company's for reconciliations information release earnings to first to

It to is Ameet? the over my now CEO, call Mallik. pleasure pass Ameet to our

thank and Amanda, us. you all Thanks, for joining

strategy. But on with We provide will changes today to allocation and corporate some regarding quarter. of you our most important time progress follow account current the my assessment reality a take markets comprehensive status, and the our capital Team Executive business into environment. changes the of DLBCL These evolving during want first I to the focusing of the and landscape, capital our spend the treatment details current by

main and XX value to the are XX expenses. operating organization over we the in strategy: to two, updated our centers; across help pipeline all to our months; are of both community three three, which programs, clinical updated our components successfully our drive we to one, optimize we implementing are new stakeholders. go-to-market can There on our and the value operations believe are greatest potential prioritizing By nearer-term we increasing have reduce next we academic growth maximize and model executing we a strategy, to believe for efficiencies drive

the Now, confident of do commercial prior better sales the uniquely the delivered million organization I'd community product differentiated that on ZYNLONTA, first net in versus We supporting like know these expand which we with a in year-over-year to of the $XX and Starting each elements. quarter, three can but to particularly profile up decline we slight ZYNLONTA, setting. communicating of physicians, in quarter. remain this those XX%

she every Since opportunity model Kristen carefully angle Commercial areas last the has to assess improvement. Chief Officer as figure existing from joined the to go-to-market November, out had of

have model with we to and result, align health our a delivered make better decided decisions As change treatment locally. how prescribers is to how care

the is expanding growing. consolidating, centers local across in the into that geographies, centers know are influence academic and Community We community. two are the

take new has confident of I marketplace. value growth phase on address lead for her ZYNLONTA. to and over teams for the these teams shifts I've the with local worked from I'm in to aligned seen model successfully new the team, decade, Our launches. commercial to right of Kristen with her ability, this a the maximize product along with skills her

the potential a drive to AXL, management our in frame. and the to our well programs the Turning time more to believe value our decided highest reasonable lifecycle ZYNLONTA KAAGX, program as programs, clinical we've as advanced pipeline, CDXX. include we have targeting resources focus on which These

thorough these protocols of date, We the to plans by programs and action. of and a are review encouraged the of progress after

and/or accelerate agreed programs. Mohamed these to with enrollment the investments either for patient have expand We to increase

investments part this Mohamed as time, of DLKX. and our targeting later. this our programs prioritization a exercise, elaborate will PSMA we At in preclinical little on are halting

business comprehensive we are the a after Team, Finally, streamlining Executive optimizing and conducted by organization the assessment efficiencies.

the in R&D workforce, across the reductions operating As efficiencies greater derived our and XX% the company. from Pepe of prioritization reduction later, discuss activities, a cost will the primarily

capital fund programs. to the prioritized With are savings, these we redeploying

updated strategy all our key fully most a patient advanced to maximize pipeline together, and better progress position through Taken commercial ZYNLONTA mid-XXXX. being programs, elements corporate the to with opportunity of us will while and funded tremendous our

Kristen? commercial I'd like a call that, the over update. for With to to turn Kristen

is optimize the with pleasure to teams have commercial on we differentiated Including reorganize therapy. It opportunity to update ZYNLONTA. the an plans this share field Ameet. to my Thanks, our

you've slight XXXX, net decline headwinds. a $XX increase were As QX year-over-year which sales quarter gross-to-net and first heard, includes of the versus million, already XX% ZYNLONTA a

While in can combinations By we is potential we do and awareness patterns, for of be lines into the therapy. agent, ZYNLONTA will the community. growth leadership a in prescribing see we establishing increased to third line, in to embed setting trial, there are line earlier believe single much encouraged well positioned and we particularly as more in third plus

my last a the few by DLBCL spent market new our analyzing market evolving from between What model of the products dynamics the academic and is I interplay go-to-market leading is today we unique how to profile the third in Consequently, that and months want particular spend thought line, adapting third setting implementing line to is in the DLBCL distinguished assessment time I've community the product sharing are performance. the and clear optimize plus setting. used other setting. ZYNLONTA's

and We systemic patients attractive line, a large opportunity receive present in safety portion line of profile givens still highly third standard the market. profile, setting, gain and refractory with ease is these tremendous even depth ZYNLONTA's believe and treaters dynamics breadth DLBCL of the The Furthermore, therapy. to market for of agent plus chemo-based relapsed a is activity, more community manageable administration. the strong single in fragmented third care no

dynamics perspective. market now a me treatment competitive from setting the and Let explain

competitive front. the On

the space aware new fast that fully We or near paradigms treatment with market approved DLBCL is moving a approval. are

are of was emerging the terms we months. approved within approval treatments Pola-RCHP setting, frontline bispecifics just of for In the and coming anticipating the

as as This challenge represents opportunity us. a much for an

treatment. more on the retreat limited certain not use Polivy will opens with competition, to up based bispecifics believe it physicians may we many of provide to setting, while from will example, anticipated frontline approval For of And they after experts, for the that in equipped best bispecifics that opportunity ZYNLONTA. academic are the feedback centers be primarily which potentially increase use this

of the an long benefit is the also run, with of single potential that powerful we In provide a agents unmet could entrance combination ZYNLONTA. to patient a The large for these population needs. believe in medical two opportunity bispecifics

other studied explain, potential has treatment in As LOTIS-X the and the Mohamed with ZYNLONTA transform bispecifics paradigm. combination the of being studies will to

we more One, and ZYNLONTA move let's community treatment expanding into the must to in stronger than shifting to Now, today. is the Two, consolidating continue decision and dynamics in lines adoption practices the that ever, between settings community are are centers making. of and optimize centralized acquisition address on academic particularly uptick through the later Three, partnerships. order two in the the interplay DLBCL.

depth local such leverage patients, expert. of the tighter the therapies In These physicians coordination community don't refer a advocacy refer and drive in cases teams with market consult where their physicians ultimately majority physicians to as complex and will across academic cases, often CAR-T local require to some prescribing. they for dynamics community of

in Given I the ZYNLONTA discuss trends go-to-market transforming setting and like would opportunities combination model. the the our evolving market, capture these of treatment we DLBCL how the to through competitive can best dynamics

By academic between that both the model our model, work we together in community and target and centers. believe evolving new key include key effectively in will following: the more our accounts, community we defined key and centers. advocates academic we commercial manage the leaders The will naturally thought changes have territories as we One, enlist field and

experience key smaller in field Three, around customer are in local realigning roles, the entire centers. specialists we implementing role. structure focused a a are we navigating complex has account based to institutions manager hematology facing on force an the Two, two community with which force field and teams

Florida example practices. work their cancer Now, well community this and will specialists, such a of important with University and practice. surrounding give critically institutions Miami top is Florida tier let of in region Moffatt, me how satellite mix offices as an of a as as

and across sales who Until model, through clear institutions sales the the and account state will treatment leverage relationship manager in no now, splitting the offices have the will different acts we specialists one Under ownership center pull but sites. specialists to we sites hematology new account with these equally, of for main suboptimal two who hematology three surrounding the as ZYNLONTA coordination had care. community satellite and the lead

to will implement for matching reorganization customer of be effectiveness one continue over right the we right the overall work of We and headcount together adoption overall relatively people roles commercial three new the medicine. curve objectives. is with shared plan to structure important with XX% improve for uptick this we potential facing increase cover the All of we team, and the so as and stable as optimize the market. local the that team This execution designed to

and a intricacies pull will team with of will through May. influence The is oriented, their be be aligned and better have announced accountable geography the mid-April change of while end community. was each reorganization will the in is that results focused empowered finalized The top accounts to the on organization market. the internally we complete, by fully local and Once the driving

have we ZYNLONTA. billion DLBCL an am of opportunity You model us line commercial ZYNLONTA to the describe combination the setting opportunity in third ultimate the will I choice. the XX% laying confident $XXX for that of plus heard as for around $X of with while agent foundation deliver this new as million

the Mohamed. turn call I'll to Now over

Thank an you, pleasure Kristen. It pipeline. is share the on update my to

mentioned, the we parts business Ameet strategy, to part and dive as our conducted prioritize we of all have As a pipeline. updated further deep on have our R&D decided of

Our to potential advanced efforts more the value. our programs, which on drive and have to intention resources our is focus highest

targeting including will XXX ADCT-XXX CDXX. with targeting X and the of ZYNLONTA management lifecycle AXL, the We with of and X, development XXX be KAAGX targeting clinical continuing and LOTIS-X,

halting Based on DLK-X. programs, efforts, our investments we targeting are ADCT-XXX XXX in our targeting and prioritization PSMA preclinical

management Regarding track. on the program, all studies lifecycle remain ZYNLONTA

look Each of emerging X lifecycle needs and options. program, of the new that enrollment we at DLBCL to unmet Taking treatment remain in therapy study all lines is ongoing next expect Phase despite to address closer designed distinct completion confirmatory our year. LOTIS-X a continue in

second not the was and line, produced at data. and patients for and data has eligible The This of ZYNLONTA trial transplant examined in SOHO lead released safety rituximab early encouraging DLBCL combination plus XXXX.

in there in tolerate LOTIS-X This of unfit We is frontline study open or patients therapy, among rituximab frail unmet ZYNLONTA continue able significant also on or progress to utilizes patients. need label good doses combination where the R-CHOP. study unfit full of Phase a not X make a frail and to

data initial seen we report Our year. for consequently acceleration program data this of we we end previous in to have enrollment of trial expecting guidance by this would to the first I pleased release has are initial been XXXX. on in an now that the am patient and half share that this

we combination, are data have rituximab the and next novel expect several exploring Beyond year. early combinations to

action bispecifics We are the mechanism particularly combining their toxicity of of profiles. distinct about ZYNLONTA excited and possibility with non-overlapping giving

with combination imbodimab. glofitamab its evaluating bispecific and combine have Roche's study to LOTIS-X collaboration with also mosunetuzumab, a The is and with we IGM

beyond pipeline AXLs, of be to ADC rest a an the Turning suited target, validated well it ZYNLONTA. has approach. is ADCT-XXX been to which with targeting for shown Starting the

the the made explore than of decision study activity. have combination We single to agent to XXX activity Phase initially focus rather X

arm an We the is are cancer. monotherapy approach finalized. Initial on second of ICSA the for current implementing the non-small on expected in and cell focus an patient patients data adding with half monotherapy In trial parallel, amendment to being with lung from focused XXXX. Sarcoma biomarker possible Phase first is X solely

ADCT-XXX first-in-class solid that tumors. asset to This various Turning targeting Novel targets a KAAGX. is

As to outcomes potential protocol optimize schedules the the patients. different we previously dosing announced, amendment finalizing are explore to clinical for

to with Once dose next no advance agencies, limiting and So yet have will dosing we toxicities agreed the dose. far not there the we have reached level. tolerated maximum regulatory been

of completing IHC assay. also the are validation We

We XXXX. half to initial the share in data of expect first

like discuss as at targeting collaboration expanding with MD to initial refractory in the Now or in current ADCT-XXX complete is shared responses The MRD as population. the CDXX level to ALL continue inpatients dosing refractory data dose ASH our well to high would showing negative Anderson. plan escalate. I encouraging program Considering with relapse at

study new shared X the Phase half additional And expect to to addition, from study will sites XXXX. be the In be added in enhance to enrollment. data of we first

we Lastly, expertise say and approach. research let history on few a our scientific the me long ADC a space. words Clearly, in tremendous have

going be forward generation next updates exclusively forward antibody the early look our contracts and technologies, of technology, efforts on our focusing coming will pipeline over on While our to months. on based new was ADC payloads. I including providing PBD-dimer we further progress success the

call the update. to give turn will a over financial to I that, Pepe With

Thank you, Mohamed.

efficiencies. Before to financials increase I the efforts review quarter, elaborate I on operating the for our want to first

the create with carefully value, of operating Executive greatest every item my the During and we line Team company, in have capital coordination the leaders where months, first entire assess the of key to few including expenses. we operations, statements and operational to process strategy, reduce streamline evaluated have and allocation potential income

the vendor create procurement the result incremental conducted external will as critical efficiencies. find to as this The have key for in We This we identified to the have which unlock example, potential holistic that through approach well a is areas value a most expenditures. include internal drive consultancy, expenditures, exercise areas of number can of we we company. where on and

pipeline including assets XX% resources will employees reduction the stage value Mohamed that There earlier for the focus company. be key we also as on on Notably full-time full-time highlighted. an workforce approximate across our the company, contractors the drivers and

noted, remain seek the in optimize stable we behind headcount ZYNLONTA will customer opportunity. overall to facing as Kristen As relatively this tremendous footprint

our representing of financials for we from the equivalent our to now reduction March the cash position and at XXst, had sheet, the XXXX. starting as $XXX.X quarter, cash of million, Turning with of $XX.X balance end million a

the Care Sobi. Europe Royalty cost quarter on commercial first million increased our expect payment business in Including mid account sales that second the updated expect taking As of a to and our by from to we Partners including extend I runway cash we in efficiency will milestone partner plan, the just our ZYNLONTA $XX a highlighted, reminder, this XXXX. receive Health

scientific the and We're share near-term to our of increasing with the next XX anticipate market which months. the in community catalyst, are label XX open having and to data investments most over

as $XX the the XX% quarter, sales XXXX. net QX P&L to Moving you versus heard, up ZYNLONTA in first million were already

during and were which excludes expenses reflected Commercial of a the mainly due down R&D Moving XXXX P&L, were operating clinical realized expenses our studies year-over-year. down to of on operating year-on-year. maintained stock-based expenditures efficiencies. already a reduced for XX% broadly non-IFRS number discontinuation ZYNLONTA the combined compensation, basis, This

for of bottom or the to and share. on net loss diluted million Moving the basic of we the basis, first a reported P&L an $X.XX quarter, adjusted per $XX.X

full-year Turning to our what February. in announced reiterating we guidance, we're previously

by a pro net to sales percentage expect to year-over-year. ZYNLONTA continue grow We double-digit

of XXXX XXXX total to in operating and decrease expect as compared XXXX. In we a terms expenses,

with like XX driving the months. important would to ZYNLONTA. Starting I next milestone to XX Finally, share value the over

double-digit in expect the start achieve part the new of development the year, this This delivering of means to by addition ZYNLONTA In pipeline. and for XXXX, indications brand commercial we end will that growth pay to profitability. to

of patients. U.S. setting, we to the our of DLBCL to quarter. study end share the our in our the By in frail we LOTIS-X ZYNLONTA line expect LOTIS-X second launch complete XXXX, In the results the enrollment in study some expect expect Outside also the to and study. we initial share we partner from coming confirmatory European to expect from results and the year, initial LOTIS-X unfit

In terms to data and we share half ADCT-XXX of the KAAGX ADCT-XXX expect initial targeting XXXX, first from AXL. the pipeline, in of targeting

Phase additional the of for XXXX. We expect the in CDXX targeting from X half also data first study ADCT-XXX

a So ZYNLONTA and pipeline. important of for milestones, number both our

turn Ameet Ameet? I'll to for that, With the call back closing remarks.

and we on of Kristen, Mohamed, create we to all help believe you, and execute future our Thank strategy to our have road value clear new capabilities To map the a Pepe. that conclude, stakeholders. for

We are forward look keeping you updated excited ahead ongoing our numerous opportunities, progress. on the and which about lie to

Now the questions. available team will be Operator. for

you. conduct Thank [Operator will Q&A Instructions]. we the time, this session. At

Markets. Gregory Please Our question RBC comes from go ahead. from first Renzo Capital

Great. a just my couple questions. me. Good for team. Maybe you morning, for and Thank taking Ameet

I'm ZYNLONTA maybe lines just to helpful see more on And it's curious, bridging CAR-T impacting the is ability for to use without CAR-T the front, in efficacy as opportunity what the competitive do and specifically, market CAR-T? the hear first, Just views on your landscape impacting earlier bispecifics. therapy you of a how the ZYNLONTA?

just maybe as question well. my in get second And I'll

and of just reductions in arrive level I'm that the as with and Ameet the optimization, impact of to the range on the Just is so what order did you changes? current what Thanks contemplated consider at much. scenarios updated strategy, corporate team just you've curious

All landscape. about thanks, I'm by competitive Thanks right. start it questions. talk turning for Greg. to all to to Well, the going the Kristen

about bispecifics, impact moving to but earlier of lines. in You both the also asked of CAR-T terms

I'll as it a potential to So I'm turn her have next bridging first, to address Mohamed and to ZYNLONTA going then talk about therapy. that

Thanks Sure. Gregory. Ameet. Thanks,

we fragmented setting see when for market, the well that out. We shake landscape we So highly believe evolving that's look DLBCL sure. in third ZYNLONTA evolving, line the the is as and quickly positioned it's at

more line really So for see in the instance, the and with setting. plus third this line, third in opportunity, CAR-T, line, definitely utilization we for increasing up us opens second opportunity

patients patients XX% whether you get XX% CAR-T complexity, won't about it's will relapse, of access. As toxicity, know, and to of or the of CAR-T, lack community because actually of

So, again, an up opportunity up, ZYNLONTA. definitely as CAR-T for moves it opens

anticipate earlier approvals the Your expect lines. in question will We bispecifics over the about have and next time, access month, we bispecifics? in bispecifics

been However, initially, the use the they've best landscape, we've equipped their we competing manage actually do are we centers in When so clinical many academic think against where in they really bispecifics, these about to trials. see agents. been studied because competitive

some non-overlapping So study great run, do potentially for a the of for same and combined is feel see At us, ZYNLONTA because we the we given extent. toxicity. opportunity already LOTIS-X studies bispecifics. the our mechanisms and an with the long this time, have, differentiated we that competition to other the over And to be opportunity

Mohamed to will So the it second I turn one. for

so question. your Thanks much for Greg. Yes,

We a for of the breaching are actually using the currently assessing CAR-T. of therapy ZYNLONTA possibility use as

in signed that study Europe. the in that the both was and issue, investigator an have We U.S. addressing

around and months. XX% these about CAR-T know dosing overall there response CAR-T we the and between of patients ZYNLONTA, XX of that XX%. what on therapy. Now, information? four have is was and time of terms median complete do LOTIS-X CAR-T The efficacy of in was in The patients after ZYNLONTA What days XXX receiving using we that went now received in response

and they that to XX for mentioned, those of in CDXX XX positive testing CDXX go be were for before out mentioned CAR-T. the or post was of ZYNLONTA IIT saying It's importantly, also I CDXX. I Most all for for patients, XX Trials patients Investigator-Initiated will worth

plus we're it different play Thank ZYNLONTA. you, We I smallest starting part scenarios. think care in we're the of just the right standard sales around is We opportunity get and in has $X think There standard having to third no -- the tremendous the we million. possibilities, different Greg, evolving ourselves clear estimate now your but playing actually setting. because here where we with can is to line, at line all of Mohamed. And market, question going indication million in peak we're market that the position quickly, our then, become mean eventually to of third to looked of in care, $XXX a

of bigger there of lines moving earlier Now, course think therapy. is, longer-term, the we opportunity to

with rituximab with and potentially the eventually First bispecific the combinations, then combination.

So of we lot think a there's potential.

product. priority. So It's approved a that clearly already was an

let's So even is de-risked data, combination new more think than, we say, asset. a

clinical was programs. second The on Phase thing focused we three our X

of strong all belief data three see the next going We months to all we're and programs. readouts XX XX on of within the have in to three them,

we so to wanted And play out. those bets

bets Of runway to with invest needed those going to earlier knew how terms we those XXXX. to that forward maintained of the and cash to the we we work some out, be middle course driven we on a play prioritize make but we of further moving we're in any then into sure programs, data wanted of of

of strong or all runway for feel derived questions, shots on we while still with out. ZYNLONTA your have cash than a goal prioritization. a And so our more three we lot maintaining that's that's We Thanks X two years now assets, like how Phase Greg.

color. Thanks, appreciate the guys. I all

moment you. Thank for question. our next One

Hung comes Please Jeff from Morgan from question Our ahead. Stanley. go next

my Thanks for questions. taking

I actual sales, to do of at might and looking With that be you the progress then end of to follow-up? start place commercial the metrics May, new you it impact the time of go-to-market what besides strategy? gauge have full long you by I a take that updated kinds see model think the guess, over And in will before how

going about thanks to I'm to for to talk the no, question. turn Kristen that. Okay,

Sure.

minimize we and possibly So as this we were really handle with to thoughtful we disruption. wanted this approach change could quickly to as in our

of It'll with be end mid-April. the field second year. month. we'll confident this of start I'm this half the And completed seeing benefits by restructured announced force, was the change model that the new of this in the So

of When the measure the you half second from benefits success sales. success, seeing us net this measure year. is of for ask we anticipate about this And in true how again we'll the

where And are a Is Thanks. particular or of of then for and can Thanks. from? Great. the coming XX%, these it field mix more about just a organization? talk your the part from you force R&D focused

it Yes, so the to I'm to XX% going Pepe turn to about reduction. talk

question, Yes, Jeff. thanks for the

for the is Just customer stable, facing footprint footprint, commercial clarity, the so we're not workforce. impacting our

the prioritization. mostly So is reduction attributed the to portfolio

So have there CMC impacted taking see and that you of DNA, we support, impacts in efforts where and back workforce in place. in type will that's so office is clinical the

Thank Okay. you.

Thanks, Jeff.

questions? any are Operator, other there

from next Our Jefferies. question ahead. go comes from Please Shi Kelly

this taking for Sean the questions. for Thanks our is on call Kelly. Hi,

data first study, the excited to see your year-end. line is expected regarding initial So LOTIS-X, by now

you. just the the we're potential label steps? initial will sufficient So wondering, What data Thank will next be to expansion? be support a

answer make will I sure question. that Mohamed Yes,

LOTIS-X per reminder, study a regulatory total or open not label XX patient It enroll by frontline is unfit study. population. patients is patients a of enabling As to design, cohort, XX frail an expected in

any However, it regulatory possible pathways. will guide future us for

of somewhere excited sharing by next data or year this that the We say be will next mid of are instead we very to year end year.

accelerated, medical community meaningful be mainly because pleased also of that the of physicians data would we'll the year be and to scientific sharing is KOL's community. the has the data The It the study. been and to enrollment orientation overall this later see

year, it out to share. won't this be data complete would complete Sean, read by Yes, year. then add end meaningful the and of to just we'll on, study have By year, full the of next the but Mohamed. Thanks, this end

for the Okay. Thanks color.

next our for moment question. One you. Thank

Okay.

from go Capital Please Our next Naureen ahead. Securities. question from Quibria comes One

Thanks taking the for morning. question. Good

of two instance, bispecifics in from you impact that with trial affect the you think lot Just in something? LOTIS-X that trial, regards to might the entries or the do getting your of recruitment landscape the think it'll any with me, for type the way shift to patient regards patients in near-term, do

for so. thanks question. don't think Naureen, the Yes, I

I think there's excitement bispecifics. around

agent approved, outside when CAR-T. excitement there's think market seen have the the potent bispecifics ZYNLONTA the of I about I the we've and single now to get be most combination. approved on will bispecifics two say therapies

And chemo require in a to for I think the interest, Is really it's in this early a everyone available amongst combinations. in think setups the we I need the of combination. LOTIS free of academic move centers, from really to community, around lot a so regimens is really like lot potent the say and there complex from systemic away community not We've more move therapies lines. possibility looking CAR-T possibility seen excitement is would there's and of there medical in setting, that

trial? sort Great. launch a you helpful. point currently That's that's trigger will anything an And in take there mean of What to ALL, trial, regards is company sponsored I from for then that XXX to sponsored with investigator view? so your it of will

Yes.

data more as the at data. the cohort cohorts and if of a on adding MD agreed dosing some want as data, dosing both expand and well there. see bring for Within sites. we we're with see it as expanding to as this, And to We to the question. MD sponsored continue higher initial to based in then continue is Anderson, we'll study. Anderson this mean, we want do decide Hope to I sites going decide already be City to well, thanks current company to in So to more we've some house well. to the

of enrollment this more I But as on and terms with in say forward, we're faster moving study more well. sites intensity would

you. great. Okay, Thank

One question. you. next for Thank moment our

Peaker Our question Boris from ahead. next with comes TD Cowen. Please go

Peaker. taking my questions. you is Thank for Hi, for [indiscernible] good morning. Boris This

share penetrated? do model, based market implemented your current on So what your think sales new and ZYNLONTA you

there's So setting, disclose XX% a feel opportunity is, add. to that free product segment player still market we think dominant answer grow. not for the Kristen line mean, in whole I this the make we very third the share. I'll of clear it's of to more and has there's I population, market. share a What fragmented the no question, There's could say player. Yes, and don't

double-digit potential peak So our to for as the million that in but you also million. the $XXX of is saw, we probably $XXX year think reiterating guidance this indication sales reiterated we've growth, between somewhere

I add to to that. don't have much

and Just line reinforcing the as ZYNLONTA an of see fragmented market we truly the in the opportunity embed standard care to ZYNLONTA setting. third

color. then LOTIS-X question. additional little that? that successful? it LOTIS-X, What or a the for you can addressable they're is And the give LOTIS-X follow-up market you just if a size color If if on Thank

good opportunity LOTIS-X, population, When current so still amount patients the if community. would one look getting the that CAR-T CAR-T should at the either second almost aren't you you Yes, a not have that's our mean, at I it penetration say there's low indication. roughly double is look transplant. I look you of in we in or either line how the when at getting half

least to that and opportunity LOTIS-X of opportunity. So could doubles current be at a could similar the be our again biggest course, indication LOTIS-X opportunity. LOTIS-X the size and

transforming of products If lines that data of the the some therapy start works, attempt potentially even potentially competing you curative early even potentially looks we can to data and if have see again, good. with

$X all would work, sales peak our to of sales. say largest That's opportunity. they billion estimate the $X.X of So potential if getting to peak billion that's, to I up what in adds

to fundamental the give optimization cost Did much. discontinued very I you ask or you you just targeting PSMA little due here? going ADC, could, a to for reason the technical discontinue question color? third I'm Thank could some If preclinical a

We shareholder question. that capital to sure great purely appreciate that areas focusing a a we're This that's want value make I on unlock it. decision. allocation is near-term. the in can Yes,

data to have the pipeline, going as of we XX we're resources so ZYNLONTA maximizing next And potential focusing XX our that's on of readouts to really which well three near-term are And why have programs. our in maximizing months. the all as

allocation purely at look capital look is this I the rationale, XXX, very strong. So scientific decision. XXX, when When they're for preclinical at I data the

were different both So would right environment we in continue a capital of them. if we fund to markets now,

in we as our nearest now success But highest than well we as choices this tough of better that need chance market prioritizing we term. to have know the right clinical we're think make and

Got you it. much. Thank very

Instructions]. [Operator you. Thank

ahead. from Brian comes Cheng JPMorgan. question next Our Please go from

this morning. question my taking for thanks team, Hey

quarter We're a more the first color on ZYNLONTA question that on you bit is sales you've Our this trajectory wondering if can sales. provide seen.

the the seeing. about discount policy you Medicare if In fact these growth? follow-up. use one you. discarded place, what And policy quarter-to-quarter growth I in is other Thank you're much impact, terms that that and talked the the there to net impact vial you how in account prescriber that you in also Given do have and gross see baseline of words, drug

Let with me start that.

Part to to the as guided because there's a GPO. contracting last net this from wastage compared Medicare and year have policy before, impact gross the of B of year we So

So both an impact. have

We And two that points have impact three Part is to the between GPO high-single-digits. wastage to policy is guided the Medicare mid-single B over in XXXX.

is volume impacting Quarter-over-quarter, down. elements already the of of taking in revenue the versus to two the the QX. mix be go that ahead. started So down was QX slightly And XXXX. slightly Yes,

great. carved new that for one this are in maybe local do an point mentioned? can on And And will then take new you. effect these would see in be Thank with go-to-market And that Yes, you inflection that in that network in teams new if this familiar these to plan you think, the more elaborate adoption you already long strategy see are point, it of how Kristen. out regions? your doctors and go-to-market local

Yes, thanks question. that for

we we've size. force field that at a our and this looked took differentiated these when a the and know got so see step So we local right, also we got back is product. dynamics right market teams, know we've changing what We

when across in this of geography, core So right? elements we observations, at we adopting already nation variations we the performance, that see by top model, So they're look have some our terms right? the performing geographies, look and at of we

and where So, with the for have worked and influence local like these and networks said, they you in leverage satellite offices. those them community

So what this really is now model to the do nation. we need across formalize

top course You market, thought ZYNLONTA. is familiarity what in with are of these their and the the do with folks our work about asked to customers around education really of of terms clinical who leaders all delivering in that's work the physicians, they

that to do have is teams with will this that enable these setting coordination the the academic want What tighter and model coordination. community we local and between

inflection You asked about point. the

with benefit the will and second this see model the confident are to We start in this we that of year. half deliver

you. Thank

remarks. will questions. now over Thank I you. back no closing hand am call further showing Ameet I for the to

joining. and Well, you the you keeping to all thank appreciate Really much all updated so all months. thoughtful future engaging questions for forward so look Thank the you and in much.

Thank you today's participation This for conference. in your does the conclude program.

You may you. Thank disconnect. now