ADC Therapeutics Announces New Employee Inducement Grant

Rhea-AI Summary

ADC Therapeutics (NYSE: ADCT) announced an inducement grant of options to purchase 6,000 common shares to a newly hired employee on January 2, 2026.

The grant was approved by the Compensation Committee under the company's Inducement Plan and relied on the NYSE employment inducement exemption (Rule 303A.08). The award vests 25% on the first anniversary and then 1/48th monthly thereafter, fully vesting on the fourth anniversary, subject to continued employment.

Key Figures

Option grant size 6,000 shares Options granted to one new employee on Jan 2, 2026

Initial vesting 25% Portion vesting on first anniversary of grant date

Monthly vesting rate 1/48th Portion of award vesting on each monthly anniversary thereafter

Full vesting period 4 years Entire award vested by fourth anniversary of grant date

Market Reality Check

$3.52 Last Close

Volume Pre‑news volume of 543,451 is below 20‑day average 1,959,174 (relative volume 0.28). low

Technical Price 3.53 is trading above 200‑day MA at 3.04 ahead of this HR-related news.

Peers on Argus

ADCT was up 0.86% pre‑news. Peers were mixed: AUTL +0.76%, YMAB +0.23%, LXRX +0.88%, while AURA -0.91% and BNTC -3.23%, pointing to stock‑specific rather than sector‑wide drivers.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Clinical data update	Positive	-14.1%	Updated LOTIS‑7 Phase 1b ZYNLONTA plus glofitamab efficacy and safety data.
Dec 02	Clinical call setup	Positive	+8.5%	Announcement of conference call to provide LOTIS‑7 Phase 1b trial update.
Dec 02	Clinical call setup	Positive	+8.5%	Repeat notice of investor call on ZYNLONTA plus glofitamab trial.
Dec 01	Inducement grants	Negative	-1.4%	Grants of 47,000 option shares to two new employees under Inducement Plan.
Dec 01	Inducement grants	Negative	-1.4%	Duplicate disclosure of December 1 employee option inducement grants.

Pattern Detected

Recent data show one notable divergence where strong LOTIS‑7 clinical results saw a negative move, while communication events and prior inducement grants generally aligned with price direction.

Recent Company History

Over the last months, ADC Therapeutics has focused on LOTIS‑7 clinical progress and capital structure. On Dec 3, 2025, strong Phase 1b efficacy data in r/r DLBCL coincided with a -14.13% move, contrasting with an 8.49% gain on a Dec 2 update call announcement. A Dec 1 inducement option grant of 47,000 shares saw a modest -1.4% reaction. Today’s much smaller 6,000‑share grant fits into this pattern of routine equity incentives alongside clinical and financing developments.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-12-09

An active S-3/A shelf amendment dated Dec 9, 2025 updates auditor consent and related disclosures but does not alter the existing prospectus or specify new offering amounts in the summary provided.

Market Pulse Summary

This announcement details a routine equity incentive: options on 6,000 shares granted to a new employee, vesting over four years with a standard 25% cliff and monthly vesting thereafter. It follows larger inducement grants disclosed on Dec 1, 2025 and sits against a backdrop of ongoing clinical work and recent financing activity. Investors may monitor future equity awards, capital raises under the existing shelf, and LOTIS‑7 updates as they evaluate dilution and execution risk.

Key Terms

antibody drug conjugates medical

"a pioneer in the field of antibody drug conjugates (ADCs), today announced"

Antibody drug conjugates are targeted medicines that combine an antibody, which seeks out specific markers on diseased cells, with a powerful drug that is released only when the antibody binds its target. Think of it as a guided missile that delivers a toxic payload directly to its target, reducing damage to healthy cells; investors watch them because successful ADCs can offer high-value, niche treatments and drive strong revenue and patent-based protection for developers.

options financial

"made a grant of options to purchase an aggregate of 6,000 of the Company's"

Options are contracts that give investors the right to buy or sell an asset at a specific price within a certain time frame. They function like a reservation or a ticket that allows for potential profit or protection against price changes, making them useful tools for managing investment risks or speculating on market movements.

inducement plan financial

"approved by the Compensation Committee ... pursuant to the Company's Inducement Plan"

An inducement plan is a program a company creates to encourage employees or new hires to stay or join by offering special benefits or rewards. It’s like a company giving extra bonuses or perks to persuade someone to choose their job over others, helping the company attract and keep talented workers.

employment inducement exemption regulatory

"made in reliance on the employment inducement exemption under the NYSE's"

An employment inducement exemption is a regulatory allowance that lets a public company grant stock or option awards to a new hire without getting prior shareholder approval, provided the awards are given solely to attract or retain that employee and meet specific limits and rules. Investors care because these one-off grants increase the total number of shares available and can dilute existing ownership and earnings per share, much like adding more slices to an already shared pie.

listed company manual regulatory

"inducement exemption under the NYSE's Listed Company Manual Rule 303A.08."

A listed company manual is the rulebook a stock exchange issues for companies whose shares trade on that market, spelling out required disclosures, reporting timelines, governance standards, and behavior that keeps trading fair. Think of it as a referee’s guide that tells companies what information they must share and how to run themselves so investors can judge value and risk; adherence promotes transparency and reduces the chance of surprise losses for shareholders.

AI-generated analysis. Not financial advice.

LAUSANNE, Switzerland, Jan. 2, 2026 /PRNewswire/ -- ADC Therapeutics SA (NYSE: ADCT), a commercial-stage global leader and pioneer in the field of antibody drug conjugates (ADCs), today announced that the Company has made a grant of options to purchase an aggregate of 6,000 of the Company's common shares to a new employee on January 2, 2026 ("Grant").

The Grant was offered as material inducement to the employee's employment. The Grant was approved by the Compensation Committee of the Company's Board of Directors pursuant to the Company's Inducement Plan to motivate and reward the recipient to perform at the highest levels and contribute significantly to the success of the Company. The Grant was made in reliance on the employment inducement exemption under the NYSE's Listed Company Manual Rule 303A.08.

The Company is issuing this press release pursuant to Rule 303A.08. The Grant shall vest and become exercisable 25% on the first anniversary of the grant date, and 1/48th of the aggregate number of shares subject to the award on each monthly anniversary of the grant date thereafter, such that the entire award will be vested as of the fourth anniversary of the grant date, subject to continued employment with the Company.

About ADC Therapeutics
ADC Therapeutics (NYSE: ADCT) is a commercial-stage global leader and pioneer in the field of antibody drug conjugates (ADCs), transforming treatment for patients through our focused portfolio with ZYNLONTA (loncastuximab tesirine-lpyl) and an early stage PSMA-targeting ADC.

ADC Therapeutics' CD19-directed ADC ZYNLONTA received accelerated approval by the FDA and conditional approval from the European Commission for the treatment of relapsed or refractory diffuse large B-cell lymphoma after two or more lines of systemic therapy. ZYNLONTA is also in development in combination with other agents and in earlier lines of therapy. In addition to ZYNLONTA, ADC Therapeutics is leveraging its expertise to advance IND-enabling activities for a next-generation PSMA-targeting ADC which utilizes a differentiated exatecan-based payload with a novel hydrophilic linker.

Headquartered in Lausanne (Biopôle), Switzerland, with operations in London and New Jersey, ADC Therapeutics is focused on driving innovation in ADC development with specialized capabilities from clinical to manufacturing and commercialization. Learn more at adctherapeutics.com and follow us on LinkedIn.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify forward-looking statements by terminology such as "may", "will", "should", "would", "expect", "intend", "plan", "anticipate", "believe", "estimate", "predict", "potential", "seem", "seek", "future", "continue", or "appear" or the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to certain risks and uncertainties that can cause actual results to differ materially from those described. Factors that may cause such differences include, but are not limited to: whether future LOTIS-7 clinical trial results will be consistent with or different from the LOTIS-7 data presented by the Company on December 3, 2025, the timing and outcome of the full LOTIS-7 trial, potential best-in-class results, future publication, compendia and regulatory strategy and the commercial opportunity; the success of the Company's strategic restructuring plan; changes in estimated costs associated with the restructuring plan including the workforce reduction and planned closure of the UK facility; the strengthened balance sheet and expected cash runway into at least 2028 which assumes use of minimum liquidity amount required to be maintained under its loan agreement covenants; the timing of the PFS events and topline data release for LOTIS-5 and the results of the trial and full FDA approval; the Company's ability to grow ZYNLONTA^® revenue in the United States and potential peak revenue; the ability of our partners to commercialize ZYNLONTA^® in foreign markets, the timing and amount of future revenue and payments to us from such partnerships and their ability to obtain regulatory approval for ZYNLONTA^® in foreign jurisdictions; the timing and results of the Company's or its partners' research and development projects or clinical trials including LOTIS 5 and 7, as well as early pre-clinical research for our exatecan-based ADC targeting PSMA; the timing and results of investigator-initiated trials including those studying FL and MZL and the potential regulatory and/or compendia strategy and the future opportunity; the timing and outcome of regulatory submissions for the Company's products or product candidates; actions by the FDA or foreign regulatory authorities; projected revenue and expenses; the Company's indebtedness, including Healthcare Royalty Management and Blue Owl and Oaktree facilities, and the restrictions imposed on the Company's activities by such indebtedness, the ability to comply with the terms of the various agreements and repay such indebtedness and the significant cash required to service such indebtedness; and the Company's ability to obtain financial and other resources for its research, development, clinical, and commercial activities; and the uncertainties of international trade policies, including tariffs, sanctions and trade barriers and potential impact they may have on our business, financial condition, and results of operations. Additional information concerning these and other factors that may cause actual results to differ materially from those anticipated in the forward-looking statements is contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K and in the Company's other periodic and current reports and filings with the U.S. Securities and Exchange Commission. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance, achievements or prospects to be materially different from any future results, performance, achievements or prospects expressed in or implied by such forward-looking statements. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document.

CONTACTS:
Investors and Media
Nicole Riley
ADC Therapeutics
Nicole.Riley@adctherapeutics.com
+1 862-926-9040

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SOURCE ADC Therapeutics SA

FAQ

What did ADC Therapeutics (ADCT) announce on January 2, 2026 regarding employee equity?

ADC Therapeutics announced an inducement option grant for 6,000 common shares to a new employee, dated January 2, 2026.

How does the ADCT inducement grant vest over time?

The options vest 25% after one year and then 1/48th monthly thereafter, fully vesting after four years, subject to continued employment.

Under what NYSE rule did ADCT rely to issue the inducement grant?

The company relied on the NYSE Listed Company Manual employment inducement exemption, Rule 303A.08.

Who approved the inducement grant at ADC Therapeutics (ADCT)?

The grant was approved by the company's Compensation Committee of the Board of Directors.

Is the ADCT January 2, 2026 inducement grant a sale of newly issued shares or options?

The announcement states the company granted options to purchase an aggregate of 6,000 common shares to the new employee.

Will the ADCT inducement grant vest immediately if the employee leaves before one year?

No; vesting is tied to continued employment, with 25% vesting at the first anniversary and subsequent monthly vesting thereafter.