Cantor Fitzgerald Cuts ADC Therapeutics Price Target On 'Repositioned Zynlonta Pipeline Strategy'

• Following Q4 FY21 results, Cantor Fitzgerald has lowered the price target on ADC Therapeutics SA (NASDAQ:ADCT) to $26 from $45 and keeps an Overweight rating.
• Analyst Brian Cheng notes that the repositioning of Zynlonta's pipeline strategy in diffuse large B-cell lymphoma (DLBCL) came as a surprise, given the multiple Zynlonta combination trials that ADC had ongoing and planned for the near-term.
• The analyst awaits more color on the Rituxan combination's differentiation vs. Monjuvi and Polivy near-term.
• In the Q4 earnings release, ADC announced discontinuing the Phase 2 LOTIS-3 trial of Zynlonta combined with ibrutinib in third-line DLBCL and Mantle cell lymphoma (MCL). 
• The Company also announced that the comparator agent in Phase 2 LOTIS-6 study, idelalisib, was recently withdrawn from the follicular lymphoma market. 
• As such, ADC has voluntarily paused the study and will consult with its clinical advisors and the U.S. Food and Drug Administration (FDA) on the optimal path forward.
• Price Action: ADCT shares are down 0.95% at $14.63 during the market session on the last check Friday.