Every year, cancer affects millions of people.
It’s one of the most important issues in the medical community today.
And while many existing treatments have shown some degree of efficacy, we still have a ways to go in terms of discovering a fully satisfactory cure.
Chemotherapy is currently the most well known treatment and it’s a potent weapon to fight cancer.
Once the chemo enters a patient’s body, it quickly hunts down and destroys cancer cells wherever it finds them.
It does this by interrupting a cell’s ability to grow and divide — which, in the case of cancer, is happening out of control.
This process can successfully stop the rapid growth of cancer cells.
Chemotherapy isn’t specific to just cancer cells.
It can impact normal cells too.
But one IPO that I have my eye on this week, ADC Therapeutics (ADCT), hopes to provide a more effective alternative to chemotherapy, such that the treatment doesn’t affect normal cells.
The company has a big vision and could be an exciting opportunity to hop onboard with.
I want to tell you a little bit more about the company and then take a look at it’s financials and trading potential.
ADCT Could Lead Alternative Cancer Treatment with Their Bold Pipeline
ADC Therapeutics is a biotechnology company that focuses on late clinical-stage oncology.
The company develops very powerful antibody drug conjugates (ADCs) that target hematological cancers and solid tumors.
ADCs can successfully target cancerous cells whilst sparing healthy cells because of their complex molecular mechanism.
And thanks to being able to discriminate between healthy and damaged tissue, the ADCs limit side effects and provide a larger therapeutic window than chemotherapy.
It’s exciting stuff, which is why ADC have been featured in a growing number of publications and scientific journals.
While eight types of ADCs have already received market approval, the ADCs developed by ADC Therapeutics were developed using the latest-generation pyrrolobenzodiazepine (PBD) dimer technology.
These PBC dimers are more powerful in their ability to kill cancer cells than first generation ADCs thanks to a newly differentiated mechanism of action.
ADC Therapeutics has a diversified pipeline of these new ADCs which are in various stages of clinical trials.
Within their hematology franchise, two of their ADCs have reached phase 2 and one is in phase 1. And within their solid tumor franchise, two are in phase 1 and two are in the preclinical phase.
After Initial Postponement, ADCT Is Set for Potential Liftoff
After delaying its IPO this fall, ADC Therapeutics is now ready to jump into the marketplace.
The company is looking to raise $185.3 million, and plans to offer 10,295,000 shares in the IPO between the price of $16 and $18.
If the IPO prices at the upper end of $18, the company could achieve a value of $1.02 billion.
I’ll be keeping my eye on this IPO throughout the upcoming week, as it will be listed under the ticker symbol ADCT with Morgan Stanley, BofA Securities, and Cowen as the lead underwriters.
While the company recorded a net loss of $116.5 million on contract revenue of $2.3 million in 2019, that’s better than their losses of $123.1 million on revenue of $1.1 million in 2018.
In other words, their revenue is increasing and their losses are decreasing.
If you want to see whether I intend to trade ADCT — along with numerous others that I go short and long on each week — then consider joining my growing list of premium IPO Payday subscribers who I’m helping capitalize on the exciting IPO market.