ADC Therapeutics Extends Brutal Two-Day Collapse After Fatal Trial Signal

ADC Therapeutics stock is suffering a second consecutive day of heavy losses, Benzinga reported Friday, as investors continued to process alarming safety findings from a major clinical trial. Shares of ADC Therapeutics SA (NYSE: ADCT) dropped roughly 14% on Friday to $1.13, establishing a new 52-week low.

Thursday’s Crash Set the Stage

The Friday decline follows a devastating Thursday session in which the stock shed nearly 50% of its value in a single day. That initial shock came after the company published topline data from its Phase 3 LOTIS-5 confirmatory study. The trial tested ZYNLONTA alongside rituximab in patients with relapsed or refractory diffuse large B-cell lymphoma, a difficult-to-treat blood cancer.

Trial Results Showed Both Progress and Danger

The LOTIS-5 data delivered a genuinely mixed picture. The ZYNLONTA combination met its primary endpoint, achieving a median progression-free survival of 6.1 months. The control arm posted just 4.7 months. That improvement, however, was overshadowed by a sharply elevated rate of serious adverse events in the treatment group. ADC Therapeutics confirmed the trial recorded treatment-discontinuing and Grade 5 events, the clinical classification for fatal outcomes. The presence of fatal adverse events in the ZYNLONTA arm introduced significant regulatory uncertainty that markets priced in immediately.

Wall Street Moved Fast on the Downgrade

RBC Capital wasted little time responding. The firm downgraded ADC Therapeutics to Sector Perform from Outperform on Thursday, cutting its price target to $2. The swift analyst action reflected the degree to which safety signals can unravel even a commercially promising oncology asset.

Technical Picture Leaves Little Room for Optimism

The broader chart for ADCT offers no immediate comfort to shareholders. The stock has shed more than 67% of its value over the past 12 months and now trades far below its 20-day, 50-day, and 200-day simple moving averages, which sit at $3.27, $3.64, and $3.82, respectively. Friday’s close pushed ADCT through its previous 52-week floor of $1.31, a breach that analysts typically read as a breakdown of established support. The relative strength index sat near 12, a deeply oversold reading that nonetheless reflects how little buying conviction remains. When price discovery is underway at these levels, oversold signals alone rarely attract sustained buying. The company has not yet indicated its next regulatory or clinical steps for ZYNLONTA.

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