ADC Therapeutics Makes Grants to New Employees Under Inducement Plan

Rhea-AI Summary

ADC Therapeutics (NYSE: ADCT) granted options to purchase an aggregate of 308,000 common shares to seven new employees on February 2, 2026 under its Inducement Plan.

The awards vest 25% after one year and then monthly over three years, relying on the NYSE employment inducement exemption.

Key Figures

Option grant size: 308,000 shares Employees granted: 7 employees Initial vesting tranche: 25% +2 more

5 metrics

Option grant size 308,000 shares Aggregate options to purchase common shares granted to new employees

Employees granted 7 employees Recipients under the Company’s Inducement Plan

Initial vesting tranche 25% Vests on the first anniversary of the grant date

Ongoing vesting rate 1/48th per month Monthly vesting after first anniversary until fully vested

Full vesting period 4 years Entire award vested by fourth anniversary, subject to continued employment

Market Reality Check

Price: $3.90 Vol: Volume 747,596 is roughly...

normal vol

$3.90 Last Close

Volume Volume 747,596 is roughly in line with the 20-day average 738,775, suggesting no unusual trading ahead of this HR-focused news. normal

Technical Shares at $3.61 are trading above the 200-day MA of $3.26, though still 24.79% below the 52-week high.

Peers on Argus

ADCT fell 3.99% while close biotech peers showed mixed moves: AUTL (-4.2%), BNTC...

ADCT fell 3.99% while close biotech peers showed mixed moves: AUTL (-4.2%), BNTC (-3.83%), LXRX (-10.08%) down, but AURA up (3.51%) and YMAB roughly flat. With no peers in the momentum scanner and no same-day peer headlines, ADCT’s move looks more stock-specific than part of a clear sector trend.

Historical Context

5 past events · Latest: Jan 08 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 08	Prelim 2025 results	Positive	-2.2%	Preliminary 2025 revenue, cash runway and pipeline update with clinical catalysts.
Jan 08	Prelim 2025 results	Positive	-2.2%	Repeat entry: same preliminary revenue, cash and clinical update details.
Jan 08	Conference participation	Neutral	-2.2%	Notice of CEO presentation at the 44th J.P. Morgan Healthcare Conference.
Jan 08	Conference participation	Neutral	-2.2%	Repeat entry: same J.P. Morgan Healthcare Conference presentation announcement.
Jan 02	Inducement option grant	Neutral	+1.1%	Inducement option grant for 6,000 shares to a new employee under Inducement Plan.

Pattern Detected

Recent history shows modest negative reactions to operational and corporate updates, with neutral responses to conference and compensation-related news.

Recent Company History

Over the past month, ADCT issued several corporate updates. On Jan 8, 2026, it released preliminary 2025 revenue and cash estimates and outlined clinical catalysts; the stock fell about 2.19% afterward, indicating a cautious reception. The same day, a notice of participation in the 44th J.P. Morgan Healthcare Conference drew a similarly small negative move. A prior inducement option grant on Jan 2, 2026 for 6,000 shares saw a modestly positive reaction of 1.14%, suggesting compensation actions alone have not been major price drivers.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-09

ADCT has an active S-3/A shelf amendment dated Dec 9, 2025, described as an exhibit-only update to add a new auditor consent from PricewaterhouseCoopers SA. The company states the amendment does not change the prospectus terms. Estimated offering-related expenses are $71,341.46, including a $8,341.46 SEC registration fee, with ADC bearing its own registration costs.

Market Pulse Summary

This announcement details option grants for 308,000 shares to 7 new employees under ADCT’s Inducemen...

Analysis

This announcement details option grants for 308,000 shares to 7 new employees under ADCT’s Inducement Plan, using a standard four-year vesting structure. It follows a smaller 6,000-share inducement grant on Jan 2, 2026, indicating ongoing use of equity-based hiring incentives. Investors may place this alongside recent preliminary 2025 results and the existing S-3/A shelf amendment when evaluating overall capital structure, dilution pathways, and alignment of employee incentives with shareholder interests.

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 (ADCs)"

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 308,000 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

"pursuant to the Company's Inducement Plan to motivate and reward the recipients"

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 Listed Company Manual Rule 303A.08"

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, Feb. 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 grants of options to purchase an aggregate of 308,000 of the Company's common shares to seven new employees on February 2, 2026 (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).

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.

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: changes to the preliminary unaudited Q4 and full year 2025 net product revenue and cash and cash equivalents as of December 31, 2025; expected cash runway at least to 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 by the Company on December 3, 2025, the timing, publication and outcome of the full LOTIS-7 trial, compendia inclusion and regulatory strategy and the commercial opportunity; the timing of the PFS events and topline data release for LOTIS-5 and the results of the trial, the timing for the sBLA submission 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 clinical trials; the timing, publication 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, trade barriers and most favored nation drug pricing and the 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 February 2, 2026 about employee option grants?

ADC Therapeutics granted options for an aggregate of 308,000 shares to seven new employees on February 2, 2026. According to the company, the grants were made under its Inducement Plan and approved by the Compensation Committee to attract and retain talent.

How do the ADCT inducement grants vest and when is full vesting expected?

The grants vest 25% after one year and then monthly over the following three years. According to the company, awards vest 1/48th monthly so the entire award is fully vested by the fourth anniversary, subject to continued employment.

Why did ADC Therapeutics use the NYSE employment inducement exemption for ADCT grants?

ADC used the NYSE employment inducement exemption to issue the awards outside prior shareholder approvals. According to the company, this reliance under Rule 303A.08 allowed inducement grants to motivate and reward newly hired employees promptly.

How many employees received option grants in ADC Therapeutics' February 2, 2026 action (ADCT)?

Seven new employees received the grants on February 2, 2026, totaling 308,000 options. According to the company, the Compensation Committee approved these inducement awards to support recruitment and retention efforts.

What is the potential shareholder impact of ADCT granting 308,000 options under the Inducement Plan?

The immediate effect is potential future share dilution if options are exercised, depending on exercise timing and company share count. According to the company, the grants are standard inducement awards intended to align new employees with long‑term performance.