ADC Therapeutics Makes Grants to New Employees Under Inducement Plan

Rhea-AI Summary

ADC Therapeutics (NYSE: ADCT) announced grants of options to purchase an aggregate of 47,000 common shares to two new employees on December 1, 2025 as inducements for employment. The Compensation Committee approved the grants under the company's Inducement Plan in reliance on the NYSE employment inducement exemption (Rule 303A.08).

The options vest 25% on the first anniversary and then 1/48th monthly thereafter, fully vesting on the fourth anniversary, subject to continued employment.

News Market Reaction

-1.40% 1.5x vol

17 alerts

-1.40% News Effect

+2.1% Peak in 7 hr 58 min

-$8M Valuation Impact

$572M Market Cap

1.5x Rel. Volume

On the day this news was published, ADCT declined 1.40%, reflecting a mild negative market reaction. Argus tracked a peak move of +2.1% during that session. Our momentum scanner triggered 17 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $8M from the company's valuation, bringing the market cap to $572M at that time. Trading volume was above average at 1.5x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Current share price: $4.18 52-week range: $1.05–$4.80 Options granted: 47,000 options +5 more

8 metrics

Current share price $4.18 Pre-news trading level for ADCT

52-week range $1.05–$4.80 Pre-news 52-week low and high

Options granted 47,000 options Aggregate options to two new employees under Inducement Plan

Initial vesting 25% Vests on first anniversary of grant date

Ongoing vesting rate 1/48 of award Additional vesting on each monthly anniversary thereafter

Full vesting timeline 4 years Award fully vested by fourth anniversary, subject to employment

Shelf expenses estimate $71,341.46 Total estimated offering-related expenses in S-3/A amendment

SEC registration fee $8,341.46 Portion of shelf-related expenses allocated to SEC fee

Market Reality Check

Price: $3.99 Vol: Volume 1,102,915 is below...

low vol

$3.99 Last Close

Volume Volume 1,102,915 is below the 20-day average 1,620,171, indicating subdued trading interest pre‑announcement. low

Technical Shares traded above the 200-day moving average of 2.91, signaling a prior upward bias before this news.

Peers on Argus

ADCT’s pre-news gain of 4.24% outpaced peers like AUTL (3.25%) and LXRX (0.76%),...

ADCT’s pre-news gain of 4.24% outpaced peers like AUTL (3.25%) and LXRX (0.76%), suggesting more company-specific strength than a broad biotech move.

Historical Context

5 past events · Latest: Dec 03 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Clinical data update	Positive	-14.1%	Updated LOTIS-7 ZYNLONTA plus glofitamab efficacy and safety data in r/r DLBCL.
Dec 02	Trial update call	Neutral	+8.5%	Announced investor call and webcast to discuss LOTIS-7 Phase 1b trial.
Dec 02	Trial update call	Neutral	+8.5%	Repeat entry: communication on upcoming LOTIS-7 trial update call.
Dec 01	Equity compensation grant	Neutral	-1.4%	Granted 47,000 stock options to two new employees under inducement plan.
Dec 01	Equity compensation grant	Neutral	-1.4%	Repeat entry: disclosure of new-hire inducement stock option grants.

Pattern Detected

Recent history shows a sharp negative reaction to positive LOTIS-7 efficacy data, while routine items like calls and equity grants saw relatively modest moves.

Recent Company History

Over late 2025, ADC Therapeutics highlighted LOTIS-7 progress and routine corporate actions. A Dec 3, 2025 update showed strong Phase 1b efficacy data but the stock fell 14.13%, indicating prior skepticism or profit-taking on positive clinical news. A conference call announcement on Dec 2 coincided with an 8.49% rise, and option grants on Dec 1 saw a mild 1.4% decline, framing today’s inducement grants as part of ongoing equity-based compensation practices.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-09

An active shelf registration on Form S-3/A was amended on Dec 9, 2025 solely to add a new auditor consent, with the company stating no changes to the prospectus content. Estimated offering-related expenses were $71,341.46, including a $8,341.46 SEC fee, indicating administrative rather than structural changes to the existing shelf.

Market Pulse Summary

This announcement details grants of 47,000 stock options to two new employees under an NYSE Rule 303...

Analysis

This announcement details grants of 47,000 stock options to two new employees under an NYSE Rule 303A.08 inducement plan, vesting over 4 years. It follows recent LOTIS‑7 clinical updates and ongoing capital markets activity, including an amended S-3/A shelf filing with estimated expenses of $71,341.46. Investors may watch how continued equity compensation, clinical milestones, and use of the shelf interact with ADCT’s position near the top of its 52‑week range.

Key Terms

antibody drug conjugates, options, Inducement Plan, employment inducement exemption

4 terms

antibody drug conjugates medical

"a commercial-stage global leader and pioneer in the field of antibody drug conjugates"

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 grants of options to purchase an aggregate of 47,000 of the Company's common shares"

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

"The Grants were made in reliance on the employment inducement exemption"

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.

AI-generated analysis. Not financial advice.

LAUSANNE, Switzerland, Dec. 1, 2025 /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 grants of options to purchase an aggregate of 47,000 of the Company's common shares to two new employees on December 1, 2025 (each, a "Grant").

The Grants were offered as material inducement to the employees' employment. The grants were approved by the Compensation Committee of the Company's Board of Directors pursuant to the Company's Inducement Plan to motivate and reward the recipients to perform at the highest levels and contribute significantly to the success of the Company. The Grants were 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 Grants 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: 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 expected cash runway into 2028 which assumes use of minimum liquidity amount required to be maintained under its loan agreement covenants; whether future LOTIS-7 clinical trial results will be consistent with or different from the LOTIS-7 data presented at EHA and ICML and future regulatory and compendia strategy and opportunity; the timing of the PFS events for LOTIS-5 and the results of the trial and full FDA approval for ZYNLONTA®; future safety and efficacy results of the Phase 2 IIT in MZL and any regulatory or compendia pathways; 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 LOTIS-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; 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

How many shares did ADC Therapeutics (ADCT) grant to new employees on December 1, 2025?

The company granted options to purchase an aggregate of 47,000 common shares to two new employees on December 1, 2025.

What is the vesting schedule for ADCT inducement awards granted December 1, 2025?

The awards vest 25% on the first anniversary and then 1/48th monthly thereafter, fully vesting on the fourth anniversary, subject to continued employment.

Under what NYSE rule did ADC Therapeutics rely to make the December 1, 2025 inducement grants?

ADC Therapeutics relied on the NYSE Listed Company Manual Rule 303A.08 employment inducement exemption.

Who approved the ADCT inducement grants made December 1, 2025?

The grants were approved by the company's Compensation Committee of the Board of Directors.

Do the ADCT option grants announced December 1, 2025 immediately vest?

No. The options do not immediately vest; they follow the stated multi-year vesting schedule and require continued employment.